Chinese Regulators Block SoftBank’s $5.4B ABB Robotics Deal
ABB Robotics employs about 7,000 people worldwide, and its U.S. headquarters and factory are located in Auburn Hills, Michigan. More than a year after ABB announced that it had signed an agreement to sell its robotics division to Japan’s SoftBank Group, the $5.375 billion transaction is now being blocked by Chinese regulators, ABB confirmed to The Robot Report.
China’s Office of the Working Mechanism for Foreign Investment Security Review has prohibited the acquisition within the country. The Financial Times, which first reported the block, said authorities were concerned that robotics data could be transferred overseas and used to train artificial intelligence models.
The review’s reach may appear unusual because the buyer is Japanese and the target is a Zurich-based industrial automation provider. Yet China represents a major portion of ABB’s revenue and manufacturing footprint, giving Chinese regulators significant leverage over the transaction. The decision also raises questions about how cross-border robotics deals will be reviewed when data, AI training, and factory automation are involved.
ABB Robotics recorded $928,000 in orders from China during fiscal 2025, an increase from $662,000 in 2024. In the third quarter of 2026, the company saw a 32% increase in business in China alone, making the country an important growth market despite the relatively small order figures disclosed in the report.
ABB also manufactures a significant number of robots at its Shanghai factory. About 90% of the machines built for Chinese customers are produced locally, and the operation employs thousands of people in China. That local production base adds to the deal’s sensitivity for Beijing.
ABB said it and SoftBank remain “in close dialogue and are working constructively on the transaction.” The companies have not announced a revised timetable or alternative structure for the deal, and it remains unclear whether they will challenge the Chinese decision or restructure the transaction.
The dispute is unfolding as global politics becomes increasingly important in robotics. China has cited national-security concerns in previous decisions to block international transactions. In April, the country prevented Meta from acquiring Manus, an AI startup founded in China and later relocated to Singapore, for $2 billion.
In the United States, the federal government has taken steps to slow the presence of foreign robot suppliers. Last week, President Donald J. Trump said the secretary of commerce had submitted a Section 232 report on the national-security effects of imports of robotics and industrial machinery, along with related parts and components.
The Section 232 statement specifically cited “advanced robots — such as autonomous robots, humanoid and quadruped robots, and autonomous ground vehicles” as providing direct support to the U.S. military. The report’s implications for the robotics industry are not yet clear, but it could lead to tariffs on foreign-made robots. Such measures would add another layer of uncertainty for global robot makers and their customers.