Chinese authorities blocked SoftBank's $5.4 billion purchase of ABB Robotics, reflecting Beijing’s tighter scrutiny of foreign tech deals. ABB, a Swiss‑Swedish industrial firm, announced the sale last year, but a Chinese regulator halted it, citing national security. The deal required Chinese approval because much of ABB's robotics sales come from the country, where the company runs a Shanghai factory producing automation equipment. China’s aggressive review of foreign investments in key technologies mirrors earlier actions against Meta’s $2 billion acquisition of AI start‑up Manus, aiming to keep robotics data and talent domestic.
The move deals a blow to SoftBank and its founder Masayoshi Son, whose $65 billion bet on AI and data‑center ventures now faces headwinds. SoftBank shares fell nearly 7 % on Thursday, down about 30 % over the past year. U.S. regulatory uncertainty after the midterm elections added further pressure on big‑tech stocks. ABB, based in Zurich, maintains deep ties to Chinese manufacturers, employing thousands and building 90 % of its robots locally. Regulators worry about robotics data being transferred abroad to train AI models. The intervention underscores China's strategic push to control emerging technologies while signaling risk for foreign firms operating in its market.
Source: New York Times Business · Summarized by HeadlinesBriefing