Nothing is leak proof.
Besides the whole idea, like it was said here, is to have the facilities physically in China. Like it was said, they can simply restrict the amount of work visas to increase native laborers in those plants. There are lots of ways to force some sort of technology transfer.
With regard to "menial" laborers, read about about the V-2 reverse engineering by the Soviets. The Americans took all the rockets and the engineers from the plant and thought that would be enough to stop the Soviets from getting access to the V-2. The Soviets just got the machine shop operators to build them more V-2's and thus reverse engineered the V-2 that way. Then they moved all the machines tools to the Soviet Union. They did not need Werner von Braun and his team.
But yes China needs national champions. South Korean companies got to have the market presence they have today because their industries were protected by steep tariffs in South Korea proper when the business started out. I am certain China will find some way around it. For example there are many state owned companies in China and if they make a policy these companies need to give priority to a Chinese product if it is available they can easily ramp up demand that way.
Besides the whole idea, like it was said here, is to have the facilities physically in China. Like it was said, they can simply restrict the amount of work visas to increase native laborers in those plants. There are lots of ways to force some sort of technology transfer.
With regard to "menial" laborers, read about about the V-2 reverse engineering by the Soviets. The Americans took all the rockets and the engineers from the plant and thought that would be enough to stop the Soviets from getting access to the V-2. The Soviets just got the machine shop operators to build them more V-2's and thus reverse engineered the V-2 that way. Then they moved all the machines tools to the Soviet Union. They did not need Werner von Braun and his team.
But yes China needs national champions. South Korean companies got to have the market presence they have today because their industries were protected by steep tariffs in South Korea proper when the business started out. I am certain China will find some way around it. For example there are many state owned companies in China and if they make a policy these companies need to give priority to a Chinese product if it is available they can easily ramp up demand that way.