China can easily absorb all the loss because China's domestic market is big. It can keep the core business relatively intact.  Germany and Japan's economy, on the hand, largely depending on foreign exports.  They will hurt badly.

China understands innovation and R&D are the key to drive China's economy forward.   China learned the hard lesson.  They don't want to repeat the same mistake with the USSR on others.  China don't want to depend on others. What happen someday they decide the party is over and they leave?  During the Soviet era,  China relied on USSR too much.  China asked USSR come to develop an airplane industry in China.  They agreed. They set up airplane factories in China and sent their engineers there.  However, after the Sino-Soviet split, they called all their engineers back.  China left with zero knowledge about building airplanes despite they were there helping for years. China had to shut down the factories and left the factories abandoned.  China's learned a hard lesson. Depending on others without doing its own R&D, it is hard to acquire the knowledge.  It set China's airplane industry back many decades. They had to start from scratch doing its own R&D for many decades.  Only now it starts to catch up and building its own airplanes.