China blocks SoftBank's $5.4 billion ABB robotics acquisition
China's National Development and Reform Commission blocked SoftBank's purchase of ABB's robotics unit, citing concerns that robotics data could train overseas AI models. The rejection follows European Commission approval and caused SoftBank shares to fall approximately 5% in Tokyo.
China has blocked SoftBank's $5.4 billion acquisition of ABB's robotics unit, a transaction originally agreed in October of the previous year and previously cleared by the European Commission. The block stems from concerns raised by China's National Development and Reform Commission (NDRC) that robotics data from the unit could be used to train overseas artificial intelligence models, particularly those developed by OpenAI. ABB's robotics division generated $2.3 billion in revenue in 2024 and employs approximately 7,000 people, with China accounting for about 30% of its business. SoftBank shares dropped roughly 5% in Tokyo following the news. Neither the rejection nor the specific review details have been confirmed in an official announcement. However, a Korean news outlet reported that the deal passed China's antitrust review in February but failed a National Security and Supply Chain Assessment. The move is interpreted as an effort by Beijing to protect its data advantage and prevent it from being used to improve U.S. AI capabilities.