China doesn't want Canada to re-build their manufacturing because China is content with using the Canadian Dollars we give them for their cheap crap to buy up our real estate.

If the trade deficit were to remain the same and we limited foreign investment in real estate, the Canadian Dollar would actually lose value because there would be less stuff that foreigners can buy with Canadian Dollars. The only way to limit foreign investment into real estate would be to limit our dependence on foreign imports.