Why did China oppose Softbank’s acquisition of ABB’s robotics division

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​China has reportedly blocked SoftBank’s planned purchase of ABB’s robotics division. The $5.4 billion acquisition was intended to underpin founder Masayoshi Son’s expansion into physical artificial intelligence (AI), technology that combines AI with machines operating in the real world.

According to a Financial Times report, China’s National Development and Reform Commission told the Japanese group the transaction would not proceed.​The decision surprised people close to SoftBank and those briefed on the review, who had expected approval until the preceding week, the report said. SoftBank is now examining what went wrong and whether it can seek approval again. ABB’s Chinese operations were a significant attraction for the acquisition, making Beijing’s decision consequential for Son’s robotics plans.​

Why did China oppose Softbank’s acquisition of ABB’s robotics division

​SoftBank agreed to acquire ABB’s robotics division in October 2025. The deal cleared China’s competition review in February before undergoing a separate foreign investment security review, which examines potential national security risks.​According to people familiar with the process cited by the FT, regulators scrutinised the robotics unit’s Chinese supply chains and sought to retain some manufacturing capabilities in the country.

​The commission was also concerned that robotics data could be transferred overseas and used to train AI models, including those developed by OpenAI, in which SoftBank is a major investor, the report said.​Regulators examined keeping intellectual property associated with parts of ABB’s robotics business in China. This could have required spinning off some operations to Chinese owners for the transaction to proceed.​However, people close to SoftBank said uncertainty in Japan remained about which conditions regulators were formally requesting before the decision.​

Why are ABB’s Chinese operations important

​China is the robotics division’s biggest market. According to the report, more than 90% of the robots it supplies to Chinese customers are manufactured locally.​ABB formed a joint venture with a Chinese partner in 1992, and government support has benefited its operations.

Shanghai’s government helped the company build its $150 million robotics factory in Pudong, which began operating in 2022.​The review reflected Beijing’s concerns about transferring assets developed in China to a Japanese company amid tensions with Tokyo and strategic competition with Washington, the FT reported.​

What does the setback mean for SoftBank

​ABB’s robotics business was expected to underpin Son’s physical AI strategy alongside US AI and robotics company Roze.​Son is also in talks to acquire Allied Universal, the private security group that owns Britain’s G4S, with plans to use robotics and AI to improve productivity, according to the report. However, SoftBank has not established whether another approval attempt could succeed.