It’s not only regulations. What you described is China’s SOP at taking over and killing another nations industry.
1: Flood the market with below cost alternatives at the same quality.
This is a government subsidised step. Local industry can’t compete and is driven out of business.
2. With competition out of the way, replace the quality goods with crap product at the same or higher prices. Profit.
China’s done this all over the world.
1. It costs a lot of money to subsidize an industry to the point where it drives its competitors out of business.
2. Even after you've driven your competitors out of business it's almost impossible to generate sufficient profits to make up for years of losses. Your customers will stop buying what you're selling if the prices are too high, the quality is poor, or both.
3. Products change so rapidly that there's a good chance your industry is obsolete by the time you drive your competitors out of business.