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I do agree it potentially could be a slippery slope situation.

Country x competes unfairly against businesses in country y.

People in country y not unreasonably object to businesses in their country being harmed and ordinary people being put out of work. Fair enough if the business in country x legitimately has a better product or means of production, business is business and people can accept it if someone else really has done it better, but it's not at all fair and reasonable if they're cheating by avoiding tax, underpaying workers or dumping waste in the ocean etc.

Ends with people in country y hating people in country x for what's happened when the real issue is the actions of government or business not the people as such.

I can see how that could happen yes.

In the same way it could be said, to pick some random examples:

*Trump doesn't speak for all Americans.

*That the UK voted to leave the EU doesn't mean everyone in Britain hates Germans, French or Italians. It's an economic and political thing, nothing personal.

*Regardless of who's in government at any given time, a decent % of Australians, or the residents of any particular state or territory, didn't vote for them and don't necessarily agree with their policies.

And so on.