That's more or less how China has historically treated its competition. The CCP has routinely intervened to give their country's corporate interests an advantage.

Up until a few years ago, if you wanted to sell a car as a non-Chinese company in China, you had to hand over pretty much everything to a local company and go into business with them.

When Google wanted to operate an uncensored search engine in China, they found themselves hacked.

It's not altogether unusual for IP to be transferred to Chinese manufacturers for production under a license agreement, then to find goods made with that IP to be for sale for far cheaper without payment made through the licensing agreement. Or maybe they just don't bother with a licensing agreement at all and do counterfeit products straight-up.

There are more examples but turnabout is ultimately fair play.