China's National Development and Reform Commission has blocked SoftBank Group Corp.'s $5.4 billion acquisition of ABB Ltd.'s robotics division. Chinese regulators raised national security concerns regarding foreign data transfers to train AI models like OpenAI amid geopolitical tensions. The decision disruption impacts Masayoshi Son's physical AI strategy and ABB's major Chinese manufacturing footprint, causing SoftBank shares to drop 5% in Tokyo.
China blocks acquisition of ABB robotics
- ▪ABB Ltd. stated on November 5, 2026, that it remains in close dialogue with SoftBank Group Corp. and that both companies are working constructively on the transaction involving ABB's robotics division
- ▪ABB Ltd. confirmed on November 5, 2026, that SoftBank Group Corp. informed ABB that Chinese regulators prohibited SoftBank's $5.4 billion acquisition of the ABB Robotics business in China
- ▪China's National Development and Reform Commission blocked SoftBank Group Corp.'s planned $5.4 billion acquisition of ABB Ltd.'s robotics division in China
Chinese regulatory scrutiny and security concerns
- ▪SoftBank Group Corp.'s proposed acquisition of ABB's robotics division cleared China's competition review in February 2026 before becoming subject to a foreign investment security review by the National Development and Reform Commission
- ▪Chinese regulators raised foreign investment security concerns over transferring ABB's robotics assets developed in China to Japanese firm SoftBank Group Corp. amid geopolitical tensions with Tokyo and Washington
- ▪The National Development and Reform Commission expressed concern that robotics data from ABB Ltd.'s Chinese operations could be transferred overseas to train artificial intelligence models, including OpenAI
- ▪China's National Development and Reform Commission scrutinised ABB Ltd.'s supply chains and considered requiring intellectual property and manufacturing capabilities to be retained in China or spun off to local owners
SoftBank's physical artificial intelligence strategy
- ▪SoftBank Group Corp. agreed last October to acquire ABB Ltd.'s robotics division to advance founder Masayoshi Son's physical artificial intelligence strategy alongside U.S. robotics firm Roze
- ▪SoftBank Group Corp. founder Masayoshi Son entered talks to acquire private security firm Allied Universal to deploy robotics and artificial intelligence to boost productivity
ABB's robotics operations in China
- ▪China serves as the largest market for ABB Ltd.'s robotics division, with more than 90% of its robots for Chinese customers manufactured locally
- ▪ABB Ltd. employs approximately 12,700 people in China and operates a $150 million robotics mega-factory in Pudong, Shanghai, which opened in 2022 with local government support
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