I don’t see why they should be restricted if most industries don’t also have similar restrictions.

That's how China got started - foreign companies were allowed to partner with and invest in domestic companies. Over time, those domestic companies took over and helped China become the manufacturing powerhouse it is now, not just in China, but globally.

Of domestically produced GM, Chrysler, or Ford vehicles, most are shipped to foreign customers; of domestically sold GM, Chrysler, or Ford vehicles, most are manufactured by foreign factories. They do some assembly locally, but the majority of it is of foreign manufacture.

However, Toyota manufacturers most of their domestic sales domestically, and operate one of the largest car manufacturing plants in the US, only slightly below Ford's US plant that largely exports to Europe. Of domestically made cars that are domestically sold, Toyota dominates that.

BMW and Nissan also operate plants in the US for domestic use.

I agree that this backwards Reaganite behavior is just going to further shut the Detroit Three out of any future. They're already on the way out, a slow decline since they left the US, but this is going to finally finish those zombies off.