What has changed? Is there more foreign capital or loss of industry?

Lots of industries has moved since the dawn of time. Generally, lower-paying, lower-margin, lower-skill business moves to places where that can be done more cheaply, and new high-skill, higher-margin businesses form here.

'Creative destruction' is essential to capitalism (and the economy); it reallocates resources from less efficient to more efficient uses. Otherwise, you get stuck in stagnent, less efficient uses.

Foreign capital seems like a great thing to me: It's a larger pool of finance to support Americans. Would it be better of someone needing investment to start a business or build a house had less financing available?

Honestly, it all seems xenophobic: Why are people on the other side of political borders somehow bad to do business with?

The problem in both foreign investment and offshoring is loss of capabilities critical to national defense. For the former, foreign ownership of capital enables foreign sabotage of critical sectors. Should the US be in conflict with a major investor nation (Who are we kidding? The most concerning such nation is China), capital can either be pulled out of the country or ownership can be leveraged to reduce key production.

For the later, well, Chinese shipyards can now build aircraft carriers at at comparable rates and at lower price than the US. Loss of US Navy power has not happened yet, but if China keeps innovating the writing is on the wall. Loss of US Naval monopoly would imply that the Pax Americana and the petrodollar itself are in jeopardy. Maybe that's a good thing if 'creative destruction' is the goal, but I would personally not be better off under a Chinese-led global order than under an American one.