The Chinese market was so enticing that companies found it nearly impossible to avoid transferring technology. Some companies were even induced to transfer control of their entire China subsidiaries. In 2018, Arm, the British company that designs the chip architecture, spun out its China division, selling 51 percent of Arm China to a group of investors, while retaining the other 49 percent itself. Two years earlier, Arm had been purchased by Softbank, a Japanese company that has invested billions in Chinese tech startups. Softbank was therefore dependent on favorable Chinese regulatory
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