"it is clear that SoftBank’s short sighted profit driven behavior has caused a massive conundrum"
If I understand things correctly, Arm China going rouge is a big problem for all western governments, who in the past have heavily relied on the leverage that they had thanks to western IP being needed for chip design. So shifting the blame onto SoftBank appears wrong. Did anyone expect a Japanese money-driven investment bank to do what's politically the right thing for the U.S.? I don't think it would be reasonable to expect that. So in my opinion, a better conclusion would be:
"Western governments allowing SoftBank to take Arm's IP into China has caused a massive conundrum"