The central tenet of China's campaign to attract the production work and the know-how of foreign firms since at least 2000 has been market access in exchange for investment and IP transfer.

If market access is off the table, and the US, EU, and NE Asian governments are all pushing and pulling firms, by various means, to invest in alternative locales for production, then there's no way to continue that trend, and China is just not able to stand on its own with regards to cutting edge R&D and commercialization yet. Domestic consumption is too low, cutting-edge research not good enough, allocation of capital insufficiently market-driven...

Part and parcel of how Xi stepped away from the low-key model followed by his predecessors far, far too soon.