None of that helps if China's foreign policy gets its products banned from world markets. I fully support China's industrial policy. But they think 1 km sq. meters of land in Galwan valley is more important than a market of 1.4 billion Indians. They think the need to arrest some worthless agitators in HK is more important than stable trade with the world's largest economy & most advanced nation and its allies. No company in its right mind would want to be tied to such a suicidal government, it doesn't matter how many subsidies it gets. And no, the Chinese market (which will only shrink and get smaller in the future, as China's population will plunge in coming decades) is not more important than the world market. 80% of the world is outside China.
It looks like you are toeing the Indian line hook line and sinker when it comes to Galwan.
You are very naive, FYI, the US Right want Chinese capitulation, and even the Democrats, along with the West are all into the China containment strategy policy. While China can and probably should resort to a more cautious conduct of foreign policy, even that will not result in any change in attitude towards China from them. Not even China 'democratizing' in form and ways that they preach will change that. The whole issue is that they are trying as much as possible to prevent or retard the time when China will emerge as the world's largest economy and they also doing the same with regards to areas of highly advanced technology.
With regards to the issue of Hong Kong, the West should stop its moralizing, and the United States in particularly, have little credibility over the issue. The Coronavirus Pandemic has fully exposed most of their countries as having less competent governments than China and their political systems are thus similarly questionable in terms of legitimacy. Not that China's is much better, but it certainly is not worse.
On the issue of trade with the most advanced nation that your commentary shows that you admire so much, I should remind you that back in 2018, the Trump Administration during Trade Talks in Beijing sought nothing but complete capitulation and control of China's Trade and Industrial Policy. That is what they presented, and if you think that they wouldn't force it if they actually had the power to do so, you are completely delusional. That was before the Hong Kong Protests and Riots in 2018.
You mention that China's government is suicidal, but if it agreed to abide by Trump's Trade demands that would actually be suicidal. You are significantly contradictory in the way that you espouse trade so much and you are so desirous of unreasonable compromise with the Americans in matters of Trade and Foreign Policy so much, yet you say that you fully support China's industrial policy which the Trump Administration thoroughly wants to kill. Peter Navarro would be so happy if there were people like you dominating China's trade and industry and foreign policy circles.
The Chinese market is huge and provides very great and profitable economies of scale. The population might shrink, but purchasing power per capita will not, it will actually likely increase significantly during the course of this decade.
For any government in existence, especially one with a large population and sufficient wealth, technological wherewithal, and organizational capability such as China that has the means of greatly dominating production for domestic demand, there is no market that is more important than domestic markets. Foreign markets are certainly useful and they can bring additional wealth, but make no mistake, nothing is more important than domestic markets. In fact, I believe that it would serve countries of this world much better to create so economic paradigm and system that greatly reduces export dependency for countries that are highly dependent on exports. One way to do this is to replace the fossil fuel economy entirely with highly efficient and/or abundant/limitless and non pollutive nuclear energy (preferably thorium) and renewables to greatly bring production costs and hence logistics costs of EVERYTHING down.