Communist China Blocks Arm Technology’s Divestment Of Joint Venture In China

According to media reports on March 2nd, the Chinese Communist Party (CCP) is doing everything it can to prevent chip design company, Arm, from divesting its joint venture in China. In May last year, Arm China submitted an application to transfer its assets to CCP regulatory agencies, but the CCP officials rejected the documents submitted by Arm for various reasons. Arm (China) is a joint venture established in China by British chip technology company Arm, which is owned by SoftBank, in 2018. It is the largest chip design IP development and service provider in China. Due to strict export policies from the U.S. and UK governments, Arm China’s net profit plummeted by 90% in 2022, prompting SoftBank to quickly consider divesting its ties to the CCP.

 In March 2022, Arm planned to go public and subsequently submitted an application to the CCP, hoping to transfer Arm (China)’s assets to SoftBank’s Vision Fund. However, CCP officials have still refused to issue relevant documents, blocking Arm’s plans to go public. As the chip war between the U.S. and China continues to escalate, the CCP does not want to lose any more chip companies, especially Arm, an indispensable ally in the chip industry. Therefore, the CCP not only cannot let Arm easily leave, but also hopes to deepen the connection and relationship between Arm and China’s semiconductor industry. However, this one-sided approach by the CCP has resulted in nothing but disappointment and despair.