A joint venture called Arm mini China – which is 51% owned by Chinese interests, principally the Hou-An Innovation Fund – has taken control of licensing Arm IP to Chinese companies.

“With this joint-venture, China expects to secure sources of technology, especially for some sensitive chips that later go into government or other security uses,” a Chinese chip industry executive told the Nikkei, “China does not need to worry whether other countries like the U.S. could somehow pressure Arm to provide less support for Chinese companies.”

Arm’s owner, Softbank, sold the 51% share of Arm China to the Chinese.

See also: Arm has no choice but to give China its IP [Mannerisms]