This plus subsidizing R&D via military contracts is how jet engines for passenger aircraft remain a US and European pursuit.

Will jet engines never be made in China? Don't bet against them. There's no guarantee that the legacy of the Cold War technology race will continue to subsidize western jet engine development.

There are reasons to think this subsidized moat will hold for a while: geared turbofan engines will deliver another increment in efficiency that passenger airlines can't ignore. Until that technology step is commoditized, the incumbent jet engine makers are relatively safe.