China blocks SoftBank's $5.375 billion purchase of ABB Robotics

China blocked SoftBank Group's $5.375 billion purchase of ABB's robotics division, ABB confirmed to The Robot Report. The report said China's Office of the Working Mechanism for Foreign Investment Security Review prohibited the acquisition in the country.

The Financial Times, which first reported the block, said Chinese authorities raised concerns about robotics data being transferred overseas and used to train artificial intelligence models. ABB and SoftBank said they remain "in close dialogue and are working constructively" on the transaction.

The move comes more than a year after ABB announced an agreement to sell its robotics division to the Japanese group. China accounts for a large share of ABB's revenue, and the company manufactures a significant number of its robots at its Shanghai factory, where about 90% of machines built for Chinese customers are made locally.

ABB Robotics saw a 32% increase in business in China in the third quarter of 2026. The stalled deal comes as robotics becomes an arena of geopolitical competition, after China in April blocked Meta's $2 billion acquisition of AI startup Manus and Washington took steps to restrict foreign robot suppliers.

What do these terms mean?

Foreign investment security review: A state screening of a foreign acquisition to ensure it does not harm national security or sensitive data.

Acquisition: Buying a controlling stake in another company or its assets.

Training AI models: Feeding a model huge amounts of data so it learns patterns before being used.