China has barred SoftBank from acquiring ABB Robotics’ business in China, leaving the $5.4 billion sale facing reported security concerns over technology and data transfers.
The companies’ plans
In October 2025, ABB agreed to sell its robotics division to SoftBank for $5.375 billion, dropping an earlier plan to spin it off as a separate company. ABB said the sale would deliver immediate value to shareholders and let it focus on electrification and automation. SoftBank called the purchase a step toward “Physical AI,” combining robots with its investments in AI, computing and related businesses. The companies expected to close in mid-to-late 2026, subject to regulatory approvals.
Why China matters
China is ABB Robotics’ biggest market, and more than 90 percent of the robots it sells to Chinese customers are made locally. The division employs about 12,700 people in China, including at a major robotics factory and research base in Shanghai.
The deal passed China’s competition review in February 2026, but still faced a separate national-security review. That review stopped SoftBank from acquiring the China business. The Financial Times reported that people familiar with the process had expected approval until shortly before the decision.
What officials reportedly feared
China’s foreign-investment security rules allow reviews of acquisitions that may affect national security, including in important manufacturing and key-technology sectors. ABB and SoftBank confirmed the prohibition but have not published a detailed explanation from regulators. The Financial Times, citing people familiar with the review, reported concerns that robotics data and assets developed in China could move overseas and be used to train AI models. SoftBank is a major investor in OpenAI. The review also examined Chinese supply chains and whether some manufacturing capacity and intellectual property should stay in China. These are reported concerns, not publicly stated findings from the regulator.
Robot systems can generate records about factory production patterns, machine performance and how work is organized. It is reasonable to infer that officials could see this data and the technology behind it as strategic industrial assets, especially if they could inform AI development abroad. Reports also cite strained China-Japan relations as part of the backdrop, but no public decision gives a full account of Beijing’s reasoning.
What happens to the sale
Losing access to the China operation would weaken SoftBank’s plan to link AI with industrial robotics. The ban complicates ABB’s chosen sale over a standalone listing and leaves employees, suppliers and customers uncertain about changes to ownership and operations. The decision also signals that merger clearance may not be enough when a deal involves local factories, technical expertise and data. It does not mean China has barred foreign investment generally, but it adds risk to deals involving strategic technology.
The prohibition covers ABB Robotics’ business in China; the companies have not announced that the entire global sale is cancelled. As of November 6, SoftBank and ABB said they were in close dialogue and working constructively. The Financial Times reported SoftBank was trying to understand the decision and whether it could seek approval again. Possible remedies could include keeping some Chinese operations or intellectual property under local ownership. A revised structure might preserve a sale of the rest of the business, but no solution or new closing timetable has been announced.