The factory is in China so it effectively belongs to the CCP as does everything else there. They can do what they want with it.
What makes you think they want foreign investment? They've been throwing anyone that's not Chinese out of the country by making life very difficult for them and cancelling or not renewing visas for some time now. There is extreme prejudice promoted by the CCP towards foreigners, a policy in complete contrast to 10 years ago when foreign investment was being encouraged.
After losing face to the US over Huawei, Elon's factory could be just what they were looking for to balance the books.
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