Hikvision China Government / Business Bubble?

Here's a few questions that has been bugging me for some time regarding Hikvision/Dahua.

  1. It's been mentioned that the Chinese government is subsidizing the cost of cameras. Why? Why not subsidize cell phone production or any number of other industries? Perhaps they already do but it doesn't seem to be having as much of an impact.
  2. Is Hikvision actually making a profit or are they just burning through their funding?
  3. There has to be a limit to how long the subsidy can last, correct?
  4. What happens when the subsidy collapses? Do Hikvision cameras end up costing just as much as other overseas product such as Geovision or Nuuo?
  5. Is the end goal just to buy as much marketshare as possible in order to eventually raise prices once they have captured the majority of the market?

It just seems like a bubble at this point. I appreciate the advances they have made with HD-TVI and other items but they are truly disrupting the industry in a way that seems unhealthy long term.

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