China’s foreign-investment security review authority has blocked SoftBank’s acquisition of ABB Robotics’ business in China, casting doubt on the companies’ planned $5.375 billion global sale amid reported concerns about technology and data transfers.
ABB said on November 5 that SoftBank had informed it of China’s decision. The companies remain in close contact and are continuing work on the transaction. The deal was agreed in October 2025 and depended on regulatory approval and the usual conditions for closing.
ABB has not announced that the wider transaction is cancelled, so its final status remains uncertain. China is a major market for the robotics division. More than 90% of the robots ABB makes for Chinese customers are manufactured locally.
The Financial Times reported, citing people familiar with the review, that officials were concerned technology developed in China and robotics data could move overseas. The report said the technology and data could potentially be used to train AI models. The report also said regulators examined the business’s Chinese supply chain and manufacturing capacity closely.
Those concerns could affect SoftBank’s effort to expand in robotics. Robotics is a key part of SoftBank’s push into “physical AI,” which combines artificial intelligence with machines operating in the real world. The companies have not publicly explained what changes, if any, might allow the transaction to proceed.