Profitability is a big issue, yes. It's not a reason we shouldn't do space colonization, but it's an obstacle.
I'll engage in a bit of wild speculation here.
Still, we may be able to inch our way out there. First you have commercial, profitable space launch and satellites. We're already there. Then a company begins operating orbital tugs with high-efficiency ion or plasma rockets (we already have these technologies) that can lift the satellites to geostationary orbit from low orbit cheaper than a chemical rocket. The satellite industry thrives, and the likes of NASA make use of the tug services too for their science missions. Now someone gets the idea that they could mine propellant for the tugs and other spacecraft from the Moon or perhaps near-Earth asteroids. The energy required to go there and bring the mined propellant back is substantially less (2-6 km/s delta v as opposed to 9 km/s) than the energy required to lift it up from Earth surface, so they can afford to sell it cheap to the spacecraft operators. It'll take a while to break even, but it'll profit.
Now we have a transport infrastructure to the Moon and a bunch of asteroids. There's a huge abundance of metals and we're already there! Someone starts manufacturing spare parts in space, simple items at first. This might be when human workers are really needed in space as the industrial operations get more and more complex. They'll work there for perhaps a week or a month at a time, then return home to Earth. There are plenty of people who want to experience space and the pay isn't bad either.
There's a supply of metals now. The secondary industries arrive and start producing everything from rocket engines to eventually entire satellites and spacecraft. Way cheaper to ferry them to their destination if you don't have to launch them from Earth. By now there's a lot of people working in space, perhaps some even living there, and there begins to form a market for the tertiary industries. Those staying in space for extensive periods of time want their bars, barbers and strip clubs too. People will settle down as the industrial centers begin to resemble small cities. Some will live there for the rest of their lives, they may be better places than where ever they lived on Earth. Some unfortunates came there seeking that promise and now can't afford to go back.
Still, now you have space colonies, all within Earth's orbital neighborhood. Earth's nations may choose to try to rule over the colonies, or they may show indifference. Expansion from here on doesn't need to profit the US or China anymore, it has to profit the colonies. This is a lot easier to do than the initial push to space as they are already up there. Going to Mars is easier for an orbital colony than reaching orbit is to an earthbound nation.
---
This might not be anything how it goes and the whole thing might not even ever happen. (which would be sad)
Don't take it too seriously, I just wanted to illustrate how I imagine it might go in a hopefully plausible scenario.
