[SkyMarshal]

Yup, that’s what decoupling is about - gradually shifting production out of China, either to other low-cost producers or back home where robots and AI can do the job cheaply and sufficiently. It’s a prerequisite to ending economic dependence on a totalitarian nation, and their leverage over you.

But I don’t imagine Western nations will ever remove their embassies from China, as OP suggests. Those are useful for both official and backchannel communications, and have no bearing on nation’s leverage over the other.