China’s block of SoftBank’s ABB purchase raises supply-chain questions

What happened

Chinese authorities have stopped SoftBank from acquiring ABB's robotics division in a deal valued at $5.4 billion. The decision was made by China's Office of the Working Mechanism for Foreign Investment Security Review, which cited concerns about data security. The announcement came last week and prevents SoftBank from moving forward with its planned expansion into robotics and physical AI. ABB is a major supplier of industrial robots to Chinese manufacturers, especially in the automotive and electronics sectors.

Key details

• SoftBank's proposed purchase price was $5.4 billion.
• ABB is one of the top three suppliers of industrial robots in China by revenue.
• China accounts for about 50% of ABB Robotics’ global industrial robot shipments.
• SoftBank has invested in OpenAI and is pursuing AI-driven business growth.
• Japan and Europe remain leaders in some key robotics technologies, while China is increasing its share in component production.

Why it matters

The block affects SoftBank’s ability to expand its AI and robotics operations, limiting its access to a significant portion of the global robotics market. ABB loses the opportunity to transfer ownership of its robotics business to SoftBank, and the value of any future deal is reduced without access to the Chinese market. Companies in robotics and manufacturing now face more complex supply chain decisions, as governments place greater emphasis on national security and local control over technology and data.