51% does mean control after all

Arm was bought by Japan’s SoftBank for £24bn in 2016. It set up a joint venture in China in 2018 with state-backed Hopu Investments, which has 51pc of the company, and appointed Mr Wu, a company veteran, to run it.

In 2020, Arm China’s board voted to fire Mr Wu but he has retained control of the company because of legal rights he enjoys. In recent months he has appeared to distance Arm China from the British company, using a new name and talking up technology it has developed in the communist country.

Arm also said that it had been unable to access Arm China’s accounts in order to audit its financials and assess the value of its stake in the venture, which has been recorded at $827m.

The company said: “We were unable to obtain access to the financial information or management of [Arm China]… we were also unable to obtain sufficient appropriate audit evidence in relation to the carrying amount of the group’s investment in Arm China.”

That 1% makes all the difference. Even if you think it’s just a technicality to conform to local law about JVs or summat, that 1% still matters.

13 thoughts on “51% does mean control after all”

  1. Bloke in the Fourth Reich

    Why do we continue to call China communist?

    Surely there is a more proper word to describe a one-party state that makes second class citizens of its non-dominant ethnic groups, demands total loyalty and submission of everyone to one figurehead leader, and insists on direct or indirect political control of every major business? One beginning with F, perhaps?

  2. I’d love to see those establishing documents that led the Japanese to believe they got to appoint the control with 49% ownership. They used to be pretty sharp with their pencils.

  3. Bloke in the Fourth Reich

    Emil, communism and fascism are pretty different in theory, even if they (rapidly) end up looking very similar, because reality eventually conflicts with communism. Fascism is at least a potentially stable form of governance, communism is not.

    I think communism is likely impossible to achieve, at least by humans. All those that bleat “but it wasn’t TROOOOO communism” are correct. It wasn’t. But we have enough empirical evidence that all attempts at communism, TROOOOO or otherwise, end in a choice of slavery, imprisonment, or death, we know not to bother trying to achieve it any more.

  4. Bloke in the Fourth Reich

    Incidentally, I think China will be in charge of the entire world inside 10 years, including the entire western world.

    They will be in a position to wage some kind of blitzkrieg, and they will break western resistance by somaing the mollycoddled SJW contingent with tons of free stuff from the slave labour concentration camps they are building in their west. Supported by the various bought and paid for politicians already running the place, some of whom will be kept on as puppets (to the extent many of them are not already Chinese puppets).

    It will be easy to get onside people who don’t even want to stand up and fight for liberty that Chinese rule is better when it comes with endless free material goods, and public struggle sessions for the bourgeoise where they have to apologise for their short-haul-flying, meat eating ways before they are executed and their property redistributed to the oppressed virtue signalers. The alternative? Die in a ditch fighting for this abstract thing called “freedom and liberty” which has already made your life chances rather less than those of your parents by enacting a massive transfer of wealth to the elite and older generations over the last 20-ish years. The message will be effective, because there is more than just an element of truth in it.

  5. Is it permissible/possible to set up a company in China that isn’t controlled by a Chinese person or entity, that is in turn under the control of the CCP?

  6. Incidentally, I think China will be in charge of the entire world inside 10 years, including the entire western world.

    I doubt it. They’ll be lucky to hold together what they have; taking over the world is beyond them. They’ll soon find their “investments” in Africa, South America and other places are rather ephemeral without continued wealth to carrot and new military clout to stick, neither of which are sufficiently forthcoming. And then they’ll have their own demographic bomb exploding in their faces.

  7. The CCP have to negotiate the enormous bubbles in their economy yet. Specifically building.

    With no new building taking place for 10 years, a whole chunk of their economy has just disappeared.

    Plus their idiotic attempt to have zero covid is going to hurt. A lot.

    We won’t see any of it, because their statistics are all lies. And they’ll keep face externally, despite the cost. There’s no one to tell Xi to pull his head in, either, so dodgy social reforms will continue. Reminds me of the USSR, which was *the* world threat, then collapsed overnight.

    Most of us here remember when Japan was imminently going to rule the world economy. We’re still waiting

  8. Bloke in the Fourth Reich

    If there’s no building going on in China, why has half of The Fatherland’s forest been felled under cover of lockdown and sold to China?

  9. Chester- “most of us remember Japan”- yep reading Alan Clark’s diaries he was of this opinion. Comes from looking at graphs on the up and projecting all the way. OK but what are the limits? Certainly China’s population suggests the limits are 10 as much as Japan’s, but I’d bet there are limits on CCP being in charge of everything and not buggering it up. OK buggering it up could mean some ill-advised foreign adventures (Taiwan?) so yeah something to consider but in charge of the world? I doubt it too.

Leave a Reply

Your email address will not be published. Required fields are marked *