>>713733925 (OP)Arasaka was involved with Tyger Claws (a major gang) and they are used largely as a paramilitary force to rub out their enemies (other gangs)
They could not implement a heavy handed policy against the gangs because of the influence that the gangs wielded (they literally control the city blocks and lower to lower middle classes), it would be a waste of money
While Arasaka does have a HQ building there it is clear that they are largely subordinate and do not occupy a place of respect. Most Arasaka employees from Japan do not regard Night City as anything more than a backwater. Consider the dialogue of Goro and other Arasaka higher level employees from Japan about this.
It's essentially asking why the colonies in Africa didnt wipe out the tribes, they did when it was necessary to do so (alot of nomad gangs were like this) but alot of the gangs served as essentially Useful Idiots (Maelstrom robs Militech, same VD boys, etc) and allowed Arasaka plausible deniability, they were wary of getting in another entanglement with the NUSA without assured victory, and thats another reason why their occupation of NC was not so overt. 4th Corporate War ended with high casualties and they simply saw it as a waste of resources at the time of 2077 to try it again so soon