Chinese authorities have blocked Japan’s SoftBank Group from acquiring the China operations of Swiss engineering company ABB’s robotics division, putting a major obstacle before a $5.4 billion global acquisition.
ABB confirmed on Nov. 5 that China’s foreign-investment security review office had prohibited SoftBank from acquiring its robotics business in the country. The company did not announce the cancellation of the broader transaction.
The decision affects a major industrial robotics operation with manufacturing and research facilities in China, the world’s largest market for industrial robots. ABB manufactures locally more than 90 percent of the robots it sells to Chinese customers.
SoftBank’s $5.4 Billion Robotics Deal
SoftBank agreed in October 2025 to purchase ABB’s entire robotics division for $5.375 billion, seeking to expand its investments in artificial intelligence and machines capable of performing physical tasks.
The division makes industrial robotic arms and automated equipment used in automobile manufacturing, electronics production, and other industries. It employs approximately 7,000 people worldwide and generated about $2.3 billion in revenue in 2024.
SoftBank Chairman and CEO Masayoshi Son has made robotics a central part of his company’s artificial intelligence strategy.
“SoftBank’s next frontier is Physical AI,” Son said when announcing the acquisition.
The term refers to artificial intelligence that enables machines, such as robots, to interact with their surroundings and perform tasks in the physical world.
The acquisition required regulatory approvals from China, the United States, and the European Union. SoftBank had originally expected to complete the transaction in mid-to-late 2026.
ABB’s extensive operations in China make Chinese regulatory approval particularly important to the deal.
The Swiss company has operated in China’s robotics industry for more than three decades. Its Shanghai facilities combine manufacturing with research and development.
In July 2025, ABB introduced three new robot families manufactured at its Shanghai factory, expanding its offerings for Chinese manufacturers in industries ranging from electronics to consumer goods.
Beijing Uses National Security Review
China’s decision came through a foreign-investment national security review, a process separate from ordinary antitrust review.
Under regulations that took effect in January 2021, Chinese authorities can examine foreign investments involving strategically important industries, including major equipment manufacturing, information technology, and critical technologies.
The review office operates under China’s National Development and Reform Commission, with the commission and the Commerce Ministry jointly overseeing the system.
Regulators can approve an investment, impose conditions, or prohibit it if they determine that it affects national security.
The latest prohibition follows another major Chinese intervention in a foreign technology acquisition.
On April 27, the same security review office announced that it had prohibited the foreign acquisition of Manus, an artificial intelligence startup previously acquired by U.S. technology company Meta, and ordered the transaction reversed.
Unlike the Manus decision, which expressly required the acquisition to be undone, ABB’s announcement identified a prohibition affecting its Chinese operations without declaring the entire global transaction terminated.
Chinese authorities have not publicly disclosed their specific reasons for blocking SoftBank’s acquisition of the China business.
At a Nov. 5 press briefing, when asked whether Beijing could confirm the decision and explain its position, Chinese Foreign Ministry spokesman Guo Jiakun referred the question to the relevant Chinese authorities without providing an explanation.
ABB said SoftBank was responsible for obtaining the regulatory approvals needed to complete the acquisition. Despite the Chinese prohibition, ABB said the two companies remained in close dialogue and were “working constructively on the transaction.”
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