Global ride-hailing giant Uber Technologies Inc. has given up its costly battle for China’s riders, swapping its local operations there for a minority stake in the country’s homegrown champion, Didi Chuxing Technology Co.

Didi, which was valued at $28 billion in its latest fundraising round, said Monday that Uber and investors in its UberChina unit will take a 20% stake in the company. Combined with Uber’s China business that was valued at around $8 billion, Didi will have a valuation of around $36 billion.

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