China has blocked Japanese investment giant SoftBank’s proposed $5.4 billion acquisition of the robotics division of Swiss engineering company ABB, dealing a major setback to its ambitions to expand its artificial intelligence and robotics business.
ABB confirmed the development on Thursday, November 5, 2026, saying China’s National Development and Reform Commission (NDRC) had prohibited the acquisition following a review of the transaction.
According to a Financial Times report cited by Reuters, Chinese authorities raised concerns about the potential transfer of robotics-related data and technology outside the country, particularly the possibility that such information could be used to train artificial intelligence models.
SoftBank, led by billionaire founder Masayoshi Son, had agreed to acquire ABB’s robotics division for approximately $5.4 billion as part of its broader strategy to strengthen its position in advanced robotics and AI-powered industrial automation.
The blocked transaction represents another significant regulatory setback for international technology investments in China. Earlier this year, Chinese authorities also ordered Meta to unwind its acquisition of artificial intelligence startup Manus, a deal valued at more than $2 billion.
China is a major market for ABB’s robotics operations, accounting for approximately 30% of its robotics-related business. The company operates around 30 local businesses in the country, employing approximately 15,000 people across nearly 130 cities.
ABB also maintains its global robotics headquarters, research and development facilities, and production operations in Shanghai, highlighting the strategic importance of the Chinese market to its robotics business.
The announcement affected investor sentiment, with SoftBank shares closing down 6.8% on Thursday. ABB shares also declined by approximately 1.1% during morning trading following news of the blocked acquisition.
SoftBank declined to comment on the development, while China’s NDRC had not immediately responded to requests for comment. ABB said it remained in close discussions with SoftBank and that both companies were working on the transaction.
The development comes amid growing regulatory scrutiny of foreign investments in sensitive technology sectors, including artificial intelligence, robotics and advanced manufacturing.
It also follows another setback for a SoftBank-backed company, digital payments firm OPay, which withdrew its planned US initial public offering last week following a regulatory inquiry by an unidentified foreign jurisdiction.
China’s decision highlights the increasing influence of national security considerations on global technology investments and raises fresh questions about the future of cross-border acquisitions involving strategically important technologies.
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