Playing with fire
Any western and east Asian countries would be playing with fire setting up in china.
Afaik it would be nearly impossible to separate the valuable design ip from the commodity (in comparison) manufacturing.
Therefore giving the Chinese license to hoover up and reuse the design IP on its own.
One wonders with their obsession with short term "share holder value" aka profits how many firms will ignore this reality and hurt themselves over the long term.
Chinese Technological parity (then leadership)is close to being inevitable but one wonders if hastening the arrival of that day is all together wise.
On the other hand - the current incumbents in the western world have not shown any good reason why they deserve to keep their current lead - particularly when you look at the current messes half their economies are in.