China Threatens Retaliation Over US Humnaoid Robot Ban, Citing Severe Damage to Relations

The U.S. Federal Communications Commission (FCC) has taken a firm stance, adding advanced foreign-produced robotic devices, including humanoids, to a list that restricts their import into the United States. This move, citing cybersecurity concerns, has drawn a sharp rebuke from China’s Ministry of Commerce, which has accused the FCC of repeatedly disregarding Beijing’s “restrained stance” on product bans and has threatened retaliation.

The FCC’s announcement on Tuesday did not explicitly name a country of origin but emphasized that retailers would still be permitted to import models previously approved by the commission. However, the inclusion of advanced robotic technology on the restricted list signals a significant escalation in the ongoing trade and technology tensions between the two economic powerhouses.

China’s Ministry of Commerce, in a statement issued Thursday, asserted that the FCC’s escalating restrictions on Chinese goods “severely damage China-U.S. economic and trade stability.” The ministry urged the U.S. to rescind the decision and issued a clear warning of countermeasures should the U.S. fail to comply.

This development is being closely watched by the burgeoning Chinese humanoid robotics sector. “This is unequivocally bad news for Chinese humanoid producers, especially those planning initial public offerings in the coming months,” stated Marc Einstein, Research Director at Counterpoint Research. He elaborated on China’s potential leverage, suggesting, “The two primary avenues China could pursue involve further restricting rare earth sales to American companies or imposing greater limitations on market access for major American firms operating within China, such as those in the automotive and semiconductor sectors.”

The Ministry of Commerce’s strong reaction comes at a sensitive time. U.S. President Donald Trump is slated to host Chinese President Xi Jinping in September, a meeting already underscored by heightened tensions surrounding the global race for artificial intelligence (AI) dominance. Earlier this week, U.S. Treasury Secretary Scott Bessent indicated the potential for the U.S. to impose sanctions on China over alleged “theft” of AI models, further fueling these concerns.

In a seemingly contrasting signal, President Trump has publicly suggested that the U.S. might adopt a more measured approach to AI controls to preserve its technological leadership over China. This nuanced stance, however, does little to assuage the immediate concerns raised by the FCC’s recent actions.

The landscape of humanoid robotics highlights the significant presence of Chinese manufacturers. According to Counterpoint Research, Chinese companies Agibot, Unitree, and UBTech commanded the top three positions in market share for humanoid robot installations last year, with Tesla’s Optimus ranking fifth. The impact on these companies is already being felt, with Hong Kong-listed UBTech shares experiencing a brief dip of over 6% in early trading on Thursday. Unitree and Agibot, meanwhile, have initiated filings for their respective IPOs.

In anticipation of potential market disruptions and to navigate the evolving regulatory environment, companies like Robostore, a key distributor of Chinese humanoid robots in North America, are proactively expanding their U.S.-based operational capabilities, as confirmed by CEO Teddy Haggerty. While specific details were not provided, this strategic move indicates a forward-thinking approach to market engagement and compliance.