Subsidies are part of the reason. Definitely not the whole reason, but part of it The Chinese provinces pump a bunch of money in to try to make their region's car manufacturers succeed. And every province is doing it. So you have a bunch of carmakers competing for market while being kept alive, so they do the most rational thing possible to gain share: lower prices.
Of course, they're also just good at building things since they do so much of it. And cheaper labor. Much better supply chain.
Do you have any figures on the degree of subsidy? The impression I’ve gotten over the last year or so is that China has been phasing out their subsidies, which also went to companies like Tesla and Stellantis, and the main shift recently was the Make Smog Great Again bill over the summer setting the US back a generation which isn’t really a criticism of Chinese industrial policy.
https://www.bcg.com/publications/2025/ev-strategies-in-us-eu...
https://www.scmp.com/economy/china-economy/article/3322666/c...