Let me spell it out: Chinese companies are extensions of the state. They are tools of Chinese foreign and trade policy. What cooperation you think US companies provide the US government, it is nothing in comparison.
The Chinese government will ensure that no Western competitor will "win" in China. Period. I understand why to a point. My main issue is with the West being completely oblivious to it.
If China wants to impose such restrictions on Western companies, they shouldn't get access to Western markets. And that's it.
Here's where I think this will first come to a head: I believe the US government will at some point soon decide that any person born in mainland China is a security risk as far as working on anything national security related. This will probably extend to key industries of national importance too (eg SpaceX).