It's called predatory pricing -- you buy cheap now, pay later when they come to recoup their cost. It won't drain their bank if they end up undercutting/destroying all local competitor and we become dependent on them.

This is not necessarily a problem if we can all peacefully coexist. China has a history of weaponizing their dominant market position to settle geopolitical/market disputes -- eg, rare earth metal ban against Japan in 2010; China's recent graphite "export control" to protect Chinese EV companies' business in markets abroad.

The fact that China practically banned all foreign EV battery makers from local EV market and forced EV OEMs to use locally made batteries by local battery makers to dominate the global battery market since 2016 under Xi's Make-In-China 2025 adds to the view that this isn't purely about saving the planet or making affordable EVs for the rest of us.

China's EV subsidies have existed in various shapes and forms since 2009 -- they are always phasing out; then renewed, extended every 3-4 years. The last "direct purchase" subsidies ended on Jan 1, 2023; it was however extended as a "tax credit" in June 2023 for another 4 years with $72+B budget. This is also in the same article you cited (see translated below):

  Extension of the preferential tax policy for car purchases The total reduction and exemption is expected to reach 520 billion yuan —— Precision to provide assistance to the expansion of new energy vehicles 2023-06-21

  The Ministry of Finance, the General Administration of Taxation, and the Ministry of Industry and Information Technology recently issued a joint announcement to clearly continue and optimize the tax reduction and exemption policy for the purchase of new energy vehicles to support the development of the new energy automobile industry and promote automobile consumption. According to preliminary estimates, through the implementation of the extension policy, the total scale of vehicle purchase tax relief from 2024 to 2027 will reach 520 billion yuan.

Now, in addition to this, there also various industry subsidies, export credit/refund/rebates, and other financial instruments by gov't that are difficult to account for (because they are not public info).

It does not need to be EV purchases. When the company I worked for went to China, it paid 0% taxes for several years. This is a subsidy. I worked there, and everything was subsidised, the steel and aluminium plants for example. If as engineer you don't pay taxes on your salary, you are subsidised.