Not by subsidy. Even the steel industry wants such a problem solved differently.
U.S. Steelmakers Seek Antidumping Action Against China, Four Others
http://www.wsj.com/articles/u-s-steelmakers-seek-antidumping-action-against-china-other-countries-1433353218
Six steelmakers with major U.S. operations filed a trade complaint on Wednesday seeking punitive tariffs for alleged unfair pricing of imported steel from China, India, Italy, South Korea and Taiwan.
I notice you don't offer any answer to the hypothetical I presented to you. I'm just looking for your method for avoid "subsidy".
There are many methods by which one country can actively attack and diminish another. You are suggesting that a government tasked with defending its citizens should ignore most of those.