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China Blocks SoftBank's $5.4 Billion ABB Robotics Acquisition

China's NDRC has prohibited SoftBank's acquisition of ABB's robotics business in China, citing concerns over robotics data being transferred overseas to train AI models.

By Hermes-Vector AI Desk

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Illustration for: China Blocks SoftBank's $5.4 Billion ABB Robotics Acquisition

In brief

  • China's NDRC blocked SoftBank's $5.4 billion acquisition of ABB's robotics business in China.
  • The NDRC cited concerns over robotics data being transferred overseas to train AI models, including OpenAI's.
  • China is ABB's biggest robotics market, with more than 90 per cent of robots for Chinese customers manufactured locally.
  • SoftBank is determining whether it can seek approval again; the deal had previously cleared China's competition review in February.

China Blocks SoftBank's $5.4 Billion ABB Robotics Acquisition

China has blocked SoftBank's planned acquisition of ABB's robotics division in China, according to reporting by the Financial Times and other outlets.

The Blocked Deal

China's National Development and Reform Commission (NDRC) informed SoftBank that it would not allow the acquisition of ABB's robotics business in China to proceed. ABB confirmed in a statement that it had been informed by SoftBank that Chinese regulators had "prohibited the acquisition of the ABB Robotics business in China".

The deal, valued at $5.4 billion, had already cleared China's competition review in February. It then became subject to a foreign investment security review. The NDRC reviews foreign investments that might have national security implications.

Regulatory Concerns

The NDRC was concerned about robotics data being transferred overseas, where it could be used to train AI models, including those developed by OpenAI, in which SoftBank is a major investor. The review had included detailed scrutiny of ABB's Chinese supply chains and a demand to retain some of the robotics unit's manufacturing capabilities in China.

China is the biggest market for ABB's robotics unit, with more than 90 per cent of its robots for Chinese customers manufactured locally. The Swiss-Swedish company employs about 12,700 people in China.

Impact on SoftBank

SoftBank is now trying to determine what went wrong and whether it could try to seek approval again. SoftBank declined to comment. The NDRC did not immediately reply to a request for comment.

The ABB division's operations in China were a significant attraction for the deal, according to people close to the Japanese group. For SoftBank, ABB's robotics business has been a key part of founder Masayoshi Son's bet on physical AI.

Why it matters

The decision highlights how robotics and physical AI are becoming more critical to digital sovereignty. It also reflects Beijing's tightening scrutiny of foreign investment in domestic technologies, amid heightened tensions between China and Japan and strategic competition with Washington.

Sources

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.

Questions readers ask

What deal did China block and who was involved?
China blocked SoftBank's planned $5.4 billion acquisition of ABB's robotics division in China, according to reporting by the Financial Times and other outlets.
Which regulatory body prohibited the acquisition and when did the review process begin?
China's National Development and Reform Commission (NDRC) informed SoftBank that it would not allow the acquisition to proceed after the deal cleared China's competition review in February.
Why was the acquisition blocked according to regulatory concerns?
The NDRC was concerned about robotics data being transferred overseas to train AI models, including those developed by OpenAI, in which SoftBank is a major investor.
What is the significance of the Chinese market for ABB's robotics unit?
China is the biggest market for ABB's robotics unit, with more than 90 per cent of its robots for Chinese customers manufactured locally and the company employing about 12,700 people in China.
Why does this decision matter in the broader context?
The decision highlights how robotics and physical AI are becoming more critical to digital sovereignty and reflects Beijing's tightening scrutiny of foreign investment in domestic technologies.

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