Economic profit should approach zero under perfect competition in the long run. PRC industrial policy compresses this process. Not just because it coordinates a lot of resources, but PRC scale also generates stupid amounts of players to throw into gauntlet. Harnessing scale is by design. Ending up with incredibly cost optimized players that then to displace incumbants in domestic and then export market is outcome.

It doesn’t have to be profitable. The accounting is a minor detail in a physical world.