West: in the sense everything but China.
The factory complex Tesla has built in Shanghai has been funded with several billion dollars of local debt. If China were to seize the factory then Tesla would simply stop servicing that debt.
The fact is, China prevents money from leaving their country, so any western company in China is kind of a farce, because they can’t actually take their money out if they make any. What they do hope to get out of China though is intellectual property, which can pass boundaries without taxes.
If Musk really has a utopian goal of decreasing emissions, he couldn’t care less if China took over Tesla China, because he won’t be making actual money from Tesla China anyway. Instead, he hopes that manufacturing innovations and ideas can be shared to his other factories.
If china took over tesla China and didn’t share innovations, that would just be stupid on their part, because the rest of the world would be working together and sharing innovation without them.