>>99696013Here's a couple of factors why that's happening and why those hardlines are misleading:
1) Some of that outflow is indeed American companies pulling out of China, its resulting either the offshoring of finace/admin/management jobs or spinning off their chinese divisions, meaning other chinese companies are buying them up on the cheap (hence capital flight). This also includes small to medium size american companies in the states that are going bankrupt because they can no longer source Chinese components anymore.
This is WORSE for US manufacturing because this allows the Chinese to better vertically integrate their multilateral supply chains, incorporating small to medium sized american assemblers and product designing firms.
And no I don't mean cheap toys and consumer garbage, I mean everything from chemical precursors to battery/sensor/MEM/FPGA subcomponents, heavy machinery and not to mention 80-90% of all rare earth extraction and processing and refining to shit as simple as ball bearings.
2) The Chinese manufacturers themselves having been preparing for the Tariffs for a decade now, they're moving funds to their ASEAN facilities to hire more ASEAN and Chinese on work visas.
This means the entirety of ASEAN and some aspects of Japan and Korea are more economically tied to China as they become directly responsible for infrastructure development and job creation. This is why you're seeing Japan and Korea trying to get economically closer with China and perhaps even developing their own free trade pact.
But this is also considered capital flight and "Chinese factories shutting down".
