Framing detector is on. I have an issue with the word "forced". Nobody is forcing you with a gun to your head. Don't want to be "forced" - don't go do business in China.
What if the gun is economic?
Ok - I'm gonna say this is not my element or knowledge - so I'm pulling everything from my nether regions...
But what if the only option - because you need to increase your profit for your shareholders - is either this (play in China by their rules) or "go out of business"; that is, the "gun" here is the choice between staying solvent and maybe even profiting (short term), or shooting yourself in the head (figuratively)?
Do your shareholders care if the IP is transferred, so long as they make money? Maybe they don't understand that continually creating IP to transfer isn't a long-term plan, but maybe they don't care - they're just as parasitical, and when you're dried up, they've moved on or will move on to the next host?
You are right that nobody has to do business in China, but how do you expect them to do business elsewhere?
Let's say a company in Europe wants to manufacture widgets for sale - worldwide or at home, no matter. They have to build a factory to make those widgets, but to do that, they need quick, fast, and cheap access to say, plastics, screws, molds, electronic parts, PCB manufacture, and the list goes on and on and on.
Where do they get that? None of that exists nearby; maybe at one time it did, but not any more. Some or all of that stuff they can get in China, but now they have all the costs of getting the materials to them (import/export), then quality assurance (if they don't have someone in China checking for them), etc. At a certain point, they are now spending a ton of money as overhead just to get the parts to make the widgets, because that infrastructure is no longer available nearby. That cost will be passed along to the consumer - but as soon as that widget, or something similar, can be purchased cheaper closer to the source of those components, to eliminate those extra costs...well, they're not going to go with the local guy any longer.
You (that is, the government) could try to tariff their way out of it, but unless the country and citizens are willing to completely obliterate their environment to make manufacturing of those components as cheap as they are in China (and China, btw, is experiencing this, and I believe this is what is driving their investment in countries in Africa and elsewhere - they are essentially offshoring what was offshored to them; externalizing the environmental deficits to another country - maybe also cheaper labor?)...
I'm not going to belabor this any longer; I just think it's not as simple as saying "well, don't make stuff in China"...