China has blocked Japanese investment company SoftBank’s planned $5.4 billion acquisition of the robotics division of Swiss engineering group ABB,
China’s National Development and Reform Commission (NDRC) has informed SoftBank that it will not permit the transaction to proceed, the Financial Times reported, citing people familiar with the matter. Reuters said it could not immediately verify the report.
SoftBank had agreed to acquire ABB’s robotics business in October 2025 as founder Masayoshi Son sought to expand the company’s presence in robotics and artificial intelligence. The acquisition was expected to support SoftBank’s ambitions in physical AI, which combines artificial intelligence with machines and real-world systems.
The deal had cleared China’s competition review in February, and SoftBank had expected to receive the remaining approval. However, the transaction faced a separate foreign investment security review.
China is a major market for ABB’s robotics business. More than 90% of the robots sold to Chinese customers are manufactured locally, while ABB employs around 12,700 people in the country.
According to the Financial Times report, Chinese authorities examined issues involving domestic supply chains, manufacturing capacity and intellectual property. Regulators were also concerned that robotics-related data could be transferred overseas and used to train artificial intelligence models.
The review reportedly considered whether parts of the business, its operations or intellectual property should remain in China. SoftBank was said to be unclear about the formal conditions that could allow the acquisition to proceed.
The Japanese company is assessing whether it can seek approval again, the report said.
The development represents a setback for SoftBank’s plans to expand into robotics and physical AI through the acquisition. The company is also navigating uncertainty around its other AI-related investments and business plans.
SoftBank and ABB did not immediately respond to Reuters’ requests for comment, while China’s NDRC could not be reached.
