China Blocks SoftBank's $5.4 Billion Purchase of ABB Robotics
Beijing's foreign-investment security review has prohibited a deal that would have given SoftBank a large industrial robotics business, and the two companies say talks continue.
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Illustrative photo of an industrial robot arm; it is not an ABB robot, a SoftBank product, or a Chinese factory. Photo: StockSnap / Pixabay, Pixabay Content License.
On November 5, 2026, Swiss engineering group ABB confirmed that Chinese authorities had prohibited SoftBank Group from completing its planned acquisition of ABB's robotics business. The deal, valued at about $5.4 billion and agreed in October 2025, had been expected to close in mid-to-late 2026. ABB said it had been informed by SoftBank that China's Office of the Working Mechanism for Foreign Investment Security Review had prohibited the acquisition of the ABB Robotics business in China.
ABB and SoftBank have not abandoned the transaction. In its statement, ABB said the two companies are in close dialogue and are working constructively on the transaction. ABB has not announced that the deal is terminated. SoftBank declined to comment on the decision, and China's National Development and Reform Commission did not immediately respond to a request for comment, according to Reuters as reported by PYMNTS.
Two names for the reviewing body
The reports name different Chinese bodies. Reuters, as reported by PYMNTS, said SoftBank learned of the decision from China's National Development and Reform Commission, the agency most often associated with economic planning. ABB's own statement, as quoted by Robotics 24/7 and Automate, names the Office of the Working Mechanism for Foreign Investment Security Review. These may be the same decision described at different levels of government, but the coverage reviewed does not say so explicitly. This article reports both names and does not resolve the difference.
The reasons are reported, not confirmed. The Financial Times first reported the decision, according to Automate and Robotics 24/7. As summarized by DealStreetAsia, the FT reported that Chinese authorities were concerned robotics data could be transferred overseas and used to train AI models, including models developed by OpenAI, in which SoftBank is a major investor. Automate's summary of the same reporting cites concerns about losing manufacturing capability and about the security of robotics data, and notes that SoftBank's investment in OpenAI reportedly drew scrutiny. Neither Beijing nor the companies have publicly confirmed these reasons in the material reviewed.
What is at stake for ABB
The stakes for ABB are concrete. China is ABB's largest robotics market, representing roughly 30% of its robot-related business, according to Reuters as reported by PYMNTS. Evertiq reported that ABB Robotics had about 7,000 employees and $2.3 billion in 2024 revenue, roughly 7% of the group total. Mobile World Live, citing ABB, says the robotics unit makes about 90% of its robots in China, and that the group counts about 12,700 employees in the country. These figures come from reporting that cites ABB and are not independently audited.
The deal had cleared one regulatory hurdle. Mobile World Live reports that China's competition regulators cleared it in February. The later block came from a different review, focused on foreign investment security and national security concerns. DealStreetAsia, citing Reuters, described it as the second major deal blocked by China this year, after Meta was ordered to unwind its acquisition of the AI startup Manus for more than $2 billion. The same report notes ongoing diplomatic tension between China and Japan, which has included China limiting exports of critical minerals to Japan.
Some outlets use $5.37 billion and others $5.4 billion. Both figures describe the same transaction.
A parallel move in Washington
Robotics policy is moving on the other side of the Pacific as well. On October 28, 2026, President Trump signed a proclamation under Section 232 of the Trade Expansion Act of 1962, finding that imports of robotics, industrial machinery and related parts threaten national security. The White House fact sheet states that the US relies on foreign imports for most types of robotics and industrial machinery. The proclamation set no tariffs immediately. It directed negotiations with trading partners, and The Next Web reports that tariffs, quotas and fees remain possible after a 180-day period. The Robot Report reported the determination on October 29.
Taken together, the two developments show robotics becoming a matter of national security and industrial policy in both Beijing and Washington. Robotics data, manufacturing location and ownership are now part of the deal calculus, not only price and technology.
What to watch
Whether ABB and SoftBank restructure the transaction, for example by changing the scope or ownership of the China operations; whether Chinese authorities publish a formal explanation; whether SoftBank pursues its physical AI robotics strategy through other acquisitions; how ABB Robotics manages operations in China; and whether the Section 232 negotiations produce concrete trade measures within the timeframe reported.
How we reported this
The prohibition, the deal value, and the fact that talks are continuing come from ABB's statement as quoted by multiple outlets. The conflict over which Chinese body informed SoftBank is unresolved in the coverage reviewed. The data-security and manufacturing-capability reasons, and the reference to SoftBank's OpenAI investment, rest on Financial Times reporting as summarized by secondary outlets. Employee, revenue and production-share figures are attributed to reporting that cites ABB and are not independently verified. The decision was reported on November 5, 2026.
Sources
- Robotics 24/7, Tim Culverhouse, "SoftBank's proposed $5.4B acquisition of ABB Robotics blocked by China," November 5, 2026. robotics247.com
- PYMNTS, "China Blocks SoftBank's $5.4 Billion ABB Robotics Takeover" (citing Reuters), November 5, 2026. pymnts.com
- Evertiq, "China blocks SoftBank's acquisition of ABB's robotics business in China," November 5, 2026. evertiq.com
- Automate (A3), "China Blocks SoftBank's Planned ABB Robotics Acquisition." automate.org
- The White House, fact sheet on the Section 232 robotics proclamation, October 2026. whitehouse.gov
- The Robot Report, "White House makes Section 232 determination regarding foreign-made robots," October 29, 2026. therobotreport.com
DailyMech used AI tools to help research and draft this article; it was fact-checked by our editors.