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

Japanese tech investment giant SoftBank said Friday that China had blocked its US$5.4 billion acquisition of a Swiss-Swedish industrial robot maker.

The deal to buy ABB Robotics, announced last year, had been touted by SoftBank as part of its push into the fast-growing field of AI-powered robots.

ABB Robotics specialises in industrial machines, such as large robotic arms that can make precise movements in factories.

Its parent company ABB Group says China is its second-largest market, with more than 90% of sales there from locally made products and services.

But Beijing — which is locked in a diplomatic spat with Japan — has been tightening control over AI and other sensitive technologies.

SoftBank said it had received notice from Chinese regulators on Wednesday “that it had prohibited the acquisition of ABB’s robotics business in China”.

It said SoftBank and ABB were “working constructively on the transaction”.

ABB said Thursday that SoftBank had informed it of the regulatory block.

When the acquisition was announced in October 2025, SoftBank — a major investor in ChatGPT-creator OpenAI — called it part of its AI-focused business strategy.

It is not the only AI-related deal barred by the Chinese government in recent months.

In April, Beijing blocked the acquisition of startup Manus, an agent tool that can carry out real-world tasks, by Facebook owner Meta after a regulatory review.

Analysts said at the time that the move was a sign of China’s growing oversight of its AI sector — a sensitive field given fierce competition with the US.

Buzz is growing around China as advanced robotics emerges as the next frontier of the AI boom, fuelling investor enthusiasm and alarm from rivals including the US.

Robots are popping up more in everyday life in China, with trial jobs including directing traffic, cleaning houses or working on factory floors.

ABB Robotics has a workforce of around 7,000, and its 2024 revenues of US$2.3 billion represented around seven percent of ABB Group’s total income.

ABB Group had previously planned to spin off the robotics business as a separately listed company.

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