Name a major American brand, and odds are you've named either someone who manufactures in China, sells to China, or more commonly, does both.
When it comes to optics or money, boards and investors will choose money.
If it's taken for granted that its impossible to make profits on the Chinese market, the best outcome for a company is to sell their IP to China and make sure the markets are kept completely segregated.
The best way forward with any critical tech won't be a simple decision. Not competing in China, partnering in China, or selling tech for use only in China, all contain existential risks.
This is a battle happening at the Chinese (as a nation) vs. the non-Chinese world level. Non-Chinese tech actors will remain at high risk until the non-Chinese world can negotiate together with the same coherence as the Chinese system can.
This is a rogue CEO who is exploiting a particular legality niche to fight his own board. And had committed misconduct before.
This is a extradinary situation. Not something you see often.
What? American CEO in China are doing this kind of shit? Oh god, I have been in US for 12 years, so the American corporations have been plaguing the Chinese economy all the time?
No wonder indigenous Chinese companies eventually win. These American CEO are trash ...