US Bans Foreign Advanced Robotics Imports Amid China Tensions

The United States Federal Communications Commission has prohibited the import of new foreign-made advanced robotic devices, creating a barrier for global expansion by robotics firms. According to the South China Morning Post, the directive adds these devices to its Covered List, preventing new models from gaining authorisation for sale in the US. This action cites supply chain vulnerabilities and cybersecurity threats.

Credits: UNSPLASH

This ban covers new humanoids, quadrupeds, and connected mobile machines. Previously authorised models remain exempt. This policy shift primarily targets China's robotics industry, which holds a significant international position. Chinese companies, for instance, were responsible for over 80 per cent of humanoid robots installed globally last year, according to a Counterpoint Research report.

But Beijing swiftly condemned the US government's decision. Foreign ministry spokesperson Mao Ning stated China consistently opposes the US broadening its national security definition to suppress Chinese companies. She argued protectionism would not improve US competitiveness, only harming American companies and consumers. Beijing would take necessary measures to protect Chinese enterprises' legitimate rights and interests, Ms Ning added.

This regulatory obstacle arises during a critical period for Chinese robotics firms. Several companies are preparing for stock market flotations and pursuing growth through international market penetration. China's robotics sector has seen rapid expansion, supported by an extensive domestic supply chain and substantial policy backing from Beijing.

And Chinese firms accounted for nearly 70 per cent of global quadruped robot sales in the first half of the year. The nation has developed over 400 humanoid robot models, comprising more than half of the worldwide total, according to China's Ministry of Industry and Information Technology. Analysts suggest the US prohibition's timing is deliberate, given several Chinese humanoid makers' impending initial public offerings.

Soumen Mandal, a principal analyst at Counterpoint Research, noted US companies including Tesla, Figure, and Boston Dynamics stand to benefit considerably. The impact on China's robotics industry remains undefined. Most Chinese companies do not separately disclose US sales figures, yet many identify overseas expansion as a core growth strategy.

So, recent customs data showed China exported nearly USD 600 million worth of industrial, cleaning, surgical, and bionic robots in June. Approximately 8 per cent of these shipments went to the US. Unitree Robotics, based in Hangzhou, generated over 40 per cent of its core business revenue from overseas last year, totalling USD 108 million.

Unitree Robotics collaborated with US Big Tech firm Nvidia on a new humanoid robot, Isaac GR00T, due for launch later this year. Restrictions raise questions about its US authorisation eligibility. Executives at Shanghai-based Agibot anticipate overseas markets contributing around 30 per cent of revenue this year, potentially over 50 per cent later. The US is a stated target.

But Shenzhen's Pudu Robotics opened its US headquarters in Dallas, Texas, earlier this year. The company reported deploying nearly 15,000 robots across the Americas, contributing to a 285 per cent year on year surge in regional revenue. Warehouse robotics group Geekplus recorded USD 839 million in US revenue last year, about 26.5 per cent of its total sales.

Foreign manufacturers can seek an exemption, according to the FCC announcement. They may apply for Pentagon approval to have eligible devices removed from the Covered List. Compliance experts interpret this measure as part of a broader governmental effort to repatriate manufacturing to US territory.

And Hunter Su, a compliance expert at the Shanghai Artificial Intelligence Technology Association, stated that for this administration, reshoring manufacturing is a matter of national security. Reliance on foreign supply chains is treated as a security flaw. Production outside the US is viewed as a strategic vulnerability, Mr Su added.

• The US Federal Communications Commission has banned the import of new foreign-made advanced robotic devices.

• This prohibition primarily affects Chinese robotics firms, which hold a dominant position in the global market.

• The FCC cited supply chain vulnerabilities and cybersecurity threats as reasons for the new Covered List additions.

• Beijing has condemned the ban, stating it constitutes protectionism and will harm American companies and consumers.

• US compliance experts view the measure as part of a wider strategy to bring manufacturing back to American soil.

Source: SCMP