Chinese cars are heavily subsidized by the state. The reason they're so cheap is because China bets it can squeeze the competition

Used to be, to get them going, robotics, innovation and vertical integration is most of the reason now. An example, BYD have their own roro ships and have ordered another 10,

https://www.whichcar.com.au/news/byd-orders-10-more-car-carriers-export-push-accelerates

and the new ships will be built in China

they make their own batteries, electric motors etc and have massive robotic assembly plants.

To suggest the reason why is because it's not a level playing field is ludicrous, the US spends many billions subsidizing car manufacturers on top of the billions us consumers spend in subsidizing them. directly.