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They still allow capitalists to become billionaires. It’s the ones the people in power don’t like that get life in prison or execution. Enemies of the party, not enemies of the working class.
They do and China also puts tariffs on those industries to protect their own. But no other country, save for the US, has the funds China does. The rest of us can’t just subsidize entire industries until international competition falls apart completely. There are subsidies to help an industry develop, and there’s economic warfare.
In this case, enemies of the party ⊂ enemies of the working class. Is it ideal that there are haute capitalists at all? No. Is it better in that respect than almost any country on earth? Yes.
Well maybe countries could band together to engage in some kind of an international economic cooperation to pool funds together, strategically invest in their industry, and better their economies. Maybe countries in Europe can form a Union of some kind. If they did, their combined GDP would be on par with that of China or the US, and they would have a lot of resources available for investment…
Again, the problem is not how much cash the EU has to invest in itself, the problem is that subsidies under capitalism lead mostly to profit increases for capitalists and actual industry development is limited. Nationalization (or at least much tighter control) of key industries is required to speed up development of productive forces.