You are talking about funding, government funded or not.
A local ib student will compete with a student taking gaokao during the admission process only if the latter qualifies as a local student as well. A local ib student and a non local gaokao student will be in 2 non jupas pools - the former local non jupas while the latter non local non jupas. The following was a lawmaker's question regarding admission of dse and local non jupas students. You can also have a look at the appendices to see the allocation in prior years. If, after reading these details, you still think your understanding of the admission process is correct, feel free. https://www.info.gov.hk/gia/general/201807/04/P2018070400722.htm?fontSize=1
