They basically want China to ship their industries to the US and for China shrink their manufacturing capacity. At the end of the day, the anti-china hawks are more or less demanding that China be reliant on US goods so they can use it as coercion.
They do want the former, but rebalancing could just mean increasing consumption in China rather than China shrinking industries. IMO that's something China could very well consider, provided something great in return is given.
For example, China could offer to build EVs and batteries in exchange for American withdrawal from East Asia or at least Japan a and the Philippines. Forget about verbal/legal guarantees, any action needs to be tangible. No American forces in the vicinity of Taiwan is a tangible guarantee of no American interference in AR. Chinese production lines in the US is a tabgible guarantee of manufacturing in the US. This is, at least on paper, a win-win arrangement, as China wants greater leverage over Taiwan and access to the American market, while America also wants more manufacturing at home and retrench its global presence.
In the long run, as I stated before, America's problem is structural. It's not like GM doesn't have access to the tools, facilities, money, or minerals BYD does. What it doesn't have is consistent policy support down to the nurturing of engineering and technical talent. Moving factories to the US won't make America an industrial powerhouse for the same reason all the years the Japanese moved manufacturing to Thailand did not make it an industrial powerhouse.
It's like back in the days when a Russian scientist was asked about concerns re: China stealing Russian technology, I think about the Su-27, and he responded "What's technology? I'm technology". America's structure currently does not allow sufficient investment in its people, so until that changes no realistic amount of manufacturing relocation will help it re-industrialized. As such, a deal such as this would only result in long lasting benefit for China, and is thus a deal worth pursuing.
