You make the implicit assumption that it is possible to maintain an advantage in the market after destroying ongoing business relationships/expectations (as ARM China appears to have done). I think you may be overestimating the importance of 'apparent market power', and underestimating the value of consistency and adaptability.
Highly centralized (command & control) and mercantilist systems tend to do well in the short term, but struggle and founder in the long term. In contrast, more chaotic, free market economies tend to look messy in the short term, but achieve amazing, spontaneous order over time.
Highly centralized (command & control) and mercantilist systems tend to do well in the short term, but struggle and founder in the long term. In contrast, more chaotic, free market economies tend to look messy in the short term, but achieve amazing, spontaneous order over time.