“What is stopping a Chinese company from opening a manufacturing facility in Vietnam and slapping a “Made in Vietnam” label, to avoid the tariffs?”
The Chinese government.
They might allow a little of it. But they will not allow wholesale capital flight.
RE: They might allow a little of it. But they will not allow wholesale capital flight.
Let’s say the Chinese-Vietnamese facility gets their money (payment from US importers) exported from Vietnam, can’t this Chinese company in Vietnam then repatriate the money from Vietnam back to China? How is this capital flight?
When post-war Japan was struggling with quality in their exports, a town in Japan named itself USA. Their goods went out as Made in USA.