I think the way forward is to encourage them to sell abroad and gain market share in foreign countries. Instead of fighting and dying in China they can put european and japanese car companies out of business.
Maybe one stipulation could be to prevent borrowing or subsidies for these companies domestically but allow borrowing for foreign expansion.
I don't even know how to respond to stuff like this. China is already world's biggest exporter of automobiles. And foreign brands are already dying out. Do people not read the news here? Have you seen how many auto sector jobs are being lost in Germany?
The companies are making money. Why do people keep assuming that Chinese automakers are not making money? Stop spending all your time reading Western propaganda. There is this thing called earnings report that you can all read instead of just relying on me to post everything.