China's commerce ministry has responded forcefully to a U.S. decision to restrict new imports of foreign-made humanoid robots, threatening countermeasures if the ban is not rescinded. The U.S. Federal Communications Commission (FCC) announced the restriction this week, citing potential cybersecurity risks from robots with advanced sensors and connectivity.
Counterpoint Research director Marc Einstein commented, "This is bad news for Chinese humanoid producers planning their IPOs in the coming months." He noted two major cards China can play: "to further restrict rare earth sales to American companies and further restricting Chinese market access for American companies like Tesla and NVIDIA."
China's rare earth dominance gives it significant leverage in technology disputes. The country produces about 60% of the world's rare earths and controls 90% of processing. Previous restrictions on rare earth exports to the U.S. during earlier trade conflicts disrupted supply chains for electronics and defense systems. Analysts expect Beijing could again use this tool to pressure Washington in the robot ban dispute.
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According to Counterpoint, the three leading humanoid robot firms by installation market share in the past year were Agibot, Unitree, and UBTech - all Chinese. Tesla's Optimus came in fifth. Both Unitree and Agibot have submitted filings for initial public offerings.
Analysts view humanoid robots as a critical frontier in both automation and AI, with potential uses spanning industries from manufacturing to healthcare. Chinese firms have invested heavily in this sector, and restrictions could delay their global expansion plans. Meanwhile, the U.S. has increasingly cited national security concerns to curb Chinese tech access, mirroring earlier actions against Huawei and semiconductor exports.
This dispute is part of a broader pattern of tech decoupling, with the U.S. citing national security to restrict Chinese access to advanced technologies - from 5G to AI chips. The humanoid robot sector, still in its early commercial stage, has attracted heavy investment from both sides. Chinese producers currently lead in installation volume, but American firms like Tesla are positioning themselves to compete. The FCC's ban could accelerate efforts by Chinese companies to diversify supply chains and forge new partnerships outside the U.S.
A meeting between U.S. President Donald Trump and Chinese President Xi Jinping is planned for September. The tech rivalry has grown more acute; U.S. Treasury Secretary Scott Bessent recently stated that Washington might impose sanctions on Beijing for alleged AI model "theft." In public remarks on Thursday, Trump suggested the U.S. could adopt a more measured approach to AI regulations to preserve its technological edge over China.
Teddy Haggerty, CEO of Robostore - a North American distributor of Chinese humanoid robots - said in a CNBC statement that the company has been bolstering its U.S. operations. He declined to provide further specifics.
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