[jollybean]

"What company is gonna leave and give that kind of gift wrapped profit center to someone else voluntarily? "

When it's no longer a gift.

These companies are sometimes high flying startups along the lines of US firms and they require access to capital.

If their valuations are clipped by an order of magnitude because of regulatory apparatus (i.e. can't list in the US and American investors have no appetite for Chinese exchanges), then this will be a problem for a lot of businesses.

TikTok is getting big in the US and the West where margins are a lot fatter, it could feasibly make more sense for Bytedance to jump ship and become an American-based company with a Chinese workforce. Obviously that's hugely speculative but just an example.

It's like any bit of regulation it has a bunch of externalities. Some may be pretty bad for the company. Maybe, maybe not.