“We are all looking forward to joining the Tencent family of studios,” said Steve Goldstein
(www.businesswire.com)
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Chinese publishers appear to be working around the restrictions with foreign subsidiaries like this one will be.
https://www.gamerbraves.com/genshin-impact-has-a-new-publisher-named-cognosphere/
Let's see how long this loophole is going to work out. If enough companies do this the Chinese government is probably going to retaliate at some point.
I'm not so sure the Chinese government will care so long as the companies keep those games out of the Chinese market to a reasonable extent and only market them to foreigners.