This has more to do with two seperate approaches to innovation. One which favors a small handful of firms establishing full control over a monopoly on the market. And another favoring the wilderness of free market economics.

The only country with anything to gain or lose here is the United States because it decided to play the game of market domination. Either it ends up with market domination and wins, or it doesnt and loses. China's result will remain what its set out to do, which is to create a technology that will support millions of small bespoke companies unbeholden to a larger firm serving all sectors of the economy.