Bzzzt. Wrong. There is no tax on moving capital OUT from China. You earn a dollar in China, you can take it out - without tax or penalty.
So, let's say your GM and your Chinese division has earned a few billion dollars in profit. You can always take it out from China - no penalty from China. But then you need to pay 39.6% tax when you bring it back to the US.
Or you can leave it in China, and use it to grow your company there. Or move it to India. Or Indonesia. Or South Korea. Or Germany. Or Brazil. Or anywhere else in the world, tax free - and use it to grow your operations there.
So, if you have a million dollars in China, and wanted to grow your business which operates in China, India, Brazil, Germany, and the US - would you leave it somewhere overseas and keep all $1 million available, or would you bring it back to the US, give $396,000 to the US Government and then try to use the remaining $604,000 here?
Easy choice...
We do it to ourselves.
That is not my understanding.