>The market solves this problem. If China makes things too hard on intl businesses, the businesses will invest to go around China. That’s what the rare Earth mine example shows.
What the rare Earth mineral example shows is that China is willing to incur environmental and human rights costs that the West is not, in order to carve out a seat at the table for negotiating future power projection.
>China needs big intl businesses. The Chinese domestic market is not big enough to support their current pace of economic growth, and the government relies on that growth for social stability.
Really not following this point. If anything, this is evidence that elites in the west - who get rich off of the kinds of "market solves everything" solutions you may or may not be alluding to - will continue to ignore the problem as long as the stock market goes up. I also don't understand your point about the size of the domestic market in China. It's well over a billion people. International business looks at those demographics and see nothing but dollar signs. The difference here is that China's government will only let in that business insofar as they see it as enriching their country, and they make this point explicit. Size alone here is an advantage.