VC still requires startups to find themselves and prove something first. China basically has a program to do X and anyone can sign up to be a part of that program. All are funded and the winners emerge. I’m broadly generalizing that process but that’s not how VC approaches it.
So instead of "Come pitch us your varied and unique ideas and convince us how our investment will 1000x the returns" it's more like "we need this capability in this industry. Here is a pool of money for you to start figuring it out. We'll focus on the more successful companies over time until they can stand on their own and compete internationally."
I can't imagine why China is so dominant in so many areas when they explicitly plan and invest in capabilities they want to have instead of just relying on the market to "naturally" provide these capabilities or constantly relying on the same handful of inept and corrupt companies to deliver on national needs.