China blocks US$5.4bil ABB robotics purchase by Japan’s SoftBank

Japanese tech investment firm SoftBank announced Friday that China had blocked its US$5.4 billion acquisition of Swiss-Swedish industrial robot maker ABB Robotics. The deal, announced last year, was positioned by SoftBank as part of its expansion into the rapidly growing AI-powered robotics industry. ABB Robotics specializes in advanced industrial machines, including large robotic arms used in factory settings.

The company's parent, ABB Group, notes that China represents its second-largest market, accounting for over 90% of its sales in locally manufactured products and services. However, Beijing, which is currently engaged in diplomatic tensions with Japan, has been increasing its regulatory control over AI and other sensitive technologies.

On Wednesday, SoftBank received notice from Chinese regulators prohibiting the acquisition of ABB's robotics business within the country. SoftBank and ABB are reportedly working constructively to address the transaction. ABB confirmed on Thursday that SoftBank had informed them of the regulatory block. The acquisition was first introduced in October 2025, with SoftBank describing it as a strategic move within its AI-focused business strategy.

SoftBank, a significant investor in OpenAI, the creator of ChatGPT, is not the only entity to face a blocked AI-related deal in recent months. In April, China blocked Meta, the parent company of Facebook, from acquiring Manus, an agent tool capable of performing real-world tasks, following a regulatory review. Analysts have noted that these incidents signify China's growing oversight of its AI sector, a critical field marked by intense competition with the United States.

There is growing buzz around China as advanced robotics emerges as the next frontier of the AI boom, sparking investor enthusiasm and concern among rivals, including the US. Robots are increasingly being integrated into everyday life in China, with trial jobs ranging from traffic direction to house cleaning and factory floor operations.

ABB Robotics currently employs approximately 7,000 people, with 2024 revenues of US$2.3 billion representing around seven percent of ABB Group's total income. Prior to the acquisition, ABB Group had plans to spin off its robotics business as a separately listed company.