Idea of free market is that it's better than a manage market. If there's room for innovation, the free market will find it. Central planning leads to being risk adverse and exploiting inefficiencies to soak up government money. So if free market is your religion, you shouldn't be bothered that China tries to plan their production instead. Cheap labour also doesn't hold since the USA has historically been happy to have their companies contract labour from cheaper countries. So if you're losing due to Chinese salaries, just hire Chinese people.

Also, China doesn't subsidise any of these exports. Then they'd lose money, and they're exporting to earn money. They subsidise R&D and domestic sales of things that'll make domestic companies more productive and competitive.