Let me also give you a modern example so it makes sense. China didn't invent the smartphone; IBM did. But there's a transfer of technology that allows chinese manufacturers to import/figure out how to make smartphones. Now they start manufacturing smartphones but are low in the value chain. Xiaomi comes about a few years later, climbs the value chain and takes the low end of the market in Asia. Awesome!
Now imagine an alternate scenario where America comes along and says, no China, you can only make plastic and metal parts. I have the machines that can make components. You have to sell these parts to me at fixed artificially low prices. I will then finish them in my factories and sell them to you. No other country can sell in your market. Suddenly you have 1BN people you can practically shoot smartphones at and make money.
70 years later Brazil starts making tons of smartphones. Great. They still can't sell in China. Brazil wins, America wins, China loses.
Now imagine an alternate scenario where America comes along and says, no China, you can only make plastic and metal parts. I have the machines that can make components. You have to sell these parts to me at fixed artificially low prices. I will then finish them in my factories and sell them to you. No other country can sell in your market. Suddenly you have 1BN people you can practically shoot smartphones at and make money.
70 years later Brazil starts making tons of smartphones. Great. They still can't sell in China. Brazil wins, America wins, China loses.