I agree with you partially but China also didn't let most of the western companies to creep into their market. They established a Chinese alternate model of the original western companies be it Wechat in place of whatsapp, renren for facebook, weibo for twitter, dianping for yelp etc.
If we followed a similar strategy, there would be no reason to sell our startups or companies in the first place and also, the western companies wouldn't have grow on such a huge scale without the Asian market. For instance, India is the biggest market for whatsapp in the world. Only if my fellow countrymen opted for the homegrown Hike messenger in place of whatsapp!