>> Divest from China and diversify manufacturing sources
Who is this aimed at?
Major brands (apple, tesla, disney, etc.) are not going to divest from China. China is a big part of their future market, they hope. They're going to invest wherever their market is. Obviously they know that this comes with strings and risks attached. They will get sideswiped with rules, punitive or otherwise.
Authoritarian government action is just a risk, like any other risk. Apple might also lose their popularity. Disney might get There could be an economic downturn. These are all risks, and companies take risks. The reward is worth the risk, evidently.
On the manufacturing side... there probably aren't as many surprises in the cards. Whatever qualms are to be had were had decades ago.
On a side note, China is proof that 99% of chamber of commerce-ish "warnings" are nonsense. Investment goes wherever the market is, whatever the rules. The ccp could decree that all iphones must be red and starred as of next week. Apple would make red starred iphones, and Cook would make a public statement praising the wisdom of this regulation.