When foreign gubmnts subsidize their export industries they do, indeed, make life harder for their competitors here. But they also make consumers here better off.
Through foreign subsidies on exports, some U.S. industries are harmed, but others are helped. The net effect of the subsidies is an increase in the real aggregate income of the United States (and a reduction in the real aggregate income of Japan and any other country that provides industrial subsidies). As opposed to discouraging the subsidization of foreign industries, the United States should look upon such subsidies as an opportunity to improve the welfare of Americans.
The subsidization of foreign exports enables Americans to tap into the income bases of foreign countries and impose a tax on foreigners every time a subsidized product is imported into this country. Communist China, for example, would never consider allowing the U.S. government to tax its one billion citizens directly; nevertheless, that is what China permits indirectly through the subsidies it gives its exporting industries, for example, textiles. The tax is realized in terms of higher prices and lower real incomes in China and lower prices and higher real incomes in the United States.