Serious question: hasn't the western world largely exporting their manufacturing base to China for everything, just not EVs/batteries? There is a major conflict here between corporate profits vs national security. Consumers generally don't care about vague concepts like national security if it makes things cheaper.
It’s a tragedy of the horizon (if I may use the term coined by the Prime Minister). Basically, corporations and democratic countries are more focussed on the short term, such that long term concerns like national security, climate change etc… are not appropriately integrated into risk models.