As far as I understand, it’s subsidies in this case. US will subsidize elements of the Korean corporation’s production as long as they build factories in the US but the benefits will be taken away if they have over the specified amount of production going on in China. And the amount they specify for that basically amounts to not allowing them to make any more factories in China and not letting their existing ones be highly productive.
As a former senior economist of the IMF once said:
(Davison Budhoo’s IMF resignation letter. PDF, archive.org)
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