Protectionism with Chinese Characteristics It's a pretty common tactic. Cite "national security" or any other vaguely plausible reason to deny access to non-favored firms (foreign companies, and local companies who don't have the "connections"). If anyone complains, government spokesperson and 50 cent mafia generate lots of angry nationalistic crying. If another country retaliates, same spokesperson and 50 cent mafia…
All Western companies with offices and factories in China have been compromised. From their financial records to trade secrets, all have been stolen by the Chinese.
In the late 90's my employer (leading technology company) implemented an IDS. We were stunned at the amount of internal attack activity aimed at our Accounting, HR and Research areas of the company all coming from our Chinese office and Factory. It had been completely infiltrated by Chinese military at every level.