America does that for aerospace & some defense stuff. But the reason not to is that the industrial policy needed to do it like China does has the effect of reduced wages, longer work hours, and lower quality of life.
The US (and EU/UK) subsidies defense, but imo that’s different. First, it’s more understandable to want domestic arms production. Second, they are not seeking to subsidize to undercut foreign suppliers and drive them out of business.
The US is not pushing subsidized F35 fighters all over the world to drive other producers under.
The US is not pushing subsidized F35 fighters all over the world to drive other producers under.