Chinese regulators block SoftBank’s $5.4 billion acquisition of ABB Robotics

It’s been more than a year since ABB announced it had signed a deal to sell its robotics division to Japanese tech giant SoftBank Group. The $5.375 billion deal is now blocked by Chinese regulators, ABB confirmed The robot report.

China’s Office of the Operational Mechanism for Foreign Investment Security Review has banned the acquisition in the country. Authorities have expressed concern that robotic data is being transferred abroad and used to train artificial intelligence models The Financial Timeswhich first reported that the deal had been blocked.

You may be wondering why Chinese regulators have so much say in a Japanese company’s acquisition of a Zurich-based industrial automation supplier, but China makes up a large portion of ABB’s revenue. For the full fiscal year 2025, ABB Robotics reported $928,000 in orders from China, up from $662,000 in orders it received from China in 2024.

This is a growth region for ABB. In the third quarter of 2026, ABB Robotics reported a 32% increase in business in China alone.

ABB also produces a significant number of robots at its Shanghai factory. Around 90% of machines built for Chinese customers are produced locally, employing thousands of people in the country.

Looking ahead, ABB said it and SoftBank are “in close dialogue and working constructively on the transaction.”

Is the robotics industry becoming a new political battleground?

This news comes as global politics becomes increasingly important in the world of robotics. This is not the first time China has blocked an international agreement citing national security concerns. In April, the country blocked Meta from acquiring Manus, an artificial intelligence startup founded in China but later moved to Singapore, for $2 billion.

Here in the United States, the federal government has taken steps to slow down foreign robot suppliers within the country. Just last week, U.S. President Donald J. Trump said the Commerce Secretary had submitted a Section 232 report on the national security effects of imports of robotics and industrial machinery, as well as related parts and components.

The Section 232 statement specifically cited “advanced robots – such as autonomous robots, humanoid and quadrupedal robots, and autonomous ground vehicles” as directly supporting the U.S. military. While it’s unclear at the moment what this will mean for the robotics industry, it could lead to tariffs on foreign-made robots.

The US Federal Communications Commission (FCC) has already banned new foreign-made advanced robotic devices, including mobile robots such as humanoids and quadrupeds. The FCC said these machines could create vulnerabilities in the supply chain and pose a cybersecurity risk to America’s critical infrastructure.

Editor’s Note: The robot report has reached out to sources for further comment, which we will publish.