China blocks SoftBank's planned purchase of ABB Robotics over data concerns

Chinese regulators have blocked SoftBank Group's planned $5.375 billion acquisition of ABB Robotics, ABB confirmed to The Robot Report. The move comes more than a year after the Zurich-based company announced the agreement to sell its robotics division to the Japanese group.

China's Office of the Working Mechanism for Foreign Investment Security Review prohibited the deal in the country. According to the Financial Times, which first reported the decision, authorities were concerned that robotics data could be transferred overseas and used to train AI models.

ABB said it and SoftBank are "in close dialogue and are working constructively on the transaction."

Why China has a say

China makes up a major portion of ABB's revenue, according to The Robot Report. It reported that ABB Robotics saw $928,000 in orders from China in fiscal 2025, up from $662,000 in 2024, and a 32% increase in business there in the third quarter of 2026.

The report also said ABB builds a significant number of robots at its Shanghai factory, and that about 90% of machines made for Chinese customers are manufactured locally. ABB Robotics has about 7,000 employees worldwide, with its U.S. headquarters in Auburn Hills, Michigan.

Data and AI concerns

Financial Times reporter Zijing Wu said on X, citing sources, that China's National Development and Reform Commission worried about robotics data leaving the country and being used to train AI models. She said those could include models built by OpenAI, where SoftBank is a major investor.

“What makes this particularly significant is that industrial robotics is increasingly being viewed not simply as manufacturing equipment, but as strategically important technology at the intersection of automation, data, and AI”

Ash Sharma, managing director of Interact Analysis

Sharma also said separating the Chinese operation from a global deal of this scale would be extremely challenging, given China's importance to ABB Robotics.

Robert Little, an advisor on business development who previously led robotics strategy at Novanta, said on LinkedIn that SoftBank could bring additional investment and a clear focus on AI. He added that negotiations might still find a way forward.

Wider political context

The Robot Report noted that China blocked Meta's $2 billion acquisition of AI startup Manus in April. In the United States, the Federal Communications Commission has banned new foreign-made advanced robotic devices, including humanoid and quadruped robots, and the Commerce Department last week determined that robotics imports pose a threat to national security, which could lead to tariffs.

The Robot Report said it has asked other sources for comment.