US bans humanoid robot imports as China threatens retaliation on trade

The US banned imports of foreign-made humanoid robots and four-legged machines on national security grounds, prompting China's commerce ministry to call for the decision's withdrawal and threaten retaliation against what it called a "severe damage" to bilateral relations.

"The ban removes an important future market for Chinese manufacturers and protects US developers from price competition, but it will not materially slow China's overall humanoid development," said Kangyuxiao Li, an analyst at Morningstar.

China accounts for roughly 85% of global humanoid robot deployments, with companies including Unitree and AGIBOT each shipping more than 5,000 units in 2025, according to Omdia. US counterparts Tesla and Figure AI shipped a few hundred or less. The Federal Communications Commission also added power inverters to its Covered List, citing risks that foreign-made units could be exploited to disrupt electricity systems, steal data, or enable cyberattacks on critical infrastructure.

The escalation comes ahead of a planned Trump-Xi summit in September and extends Washington's strategy of restricting Chinese technology access, following similar bans on drones and semiconductor export controls. Morgan Stanley analysts forecast China's humanoid robot market could reach $15 billion by 2030, while Barclays data shows the country accounted for roughly 85% of humanoid deployments globally last year.

The cybersecurity rationale behind the ban

The FCC said advanced robots are internet-connected systems equipped with cameras, microphones, LiDAR sensors, GPS modules, and wireless technologies including Wi-Fi, Bluetooth, and 5G — features that create surveillance and cyberattack risks if manufactured by companies subject to foreign government influence. Officials identified two specific vulnerabilities: one allowing access to a robot's live camera feeds and microphone audio, and another enabling hackers to remotely control machines and create a network of compromised devices, or a "humanoid botnet."

FCC Chairman Brendan Carr said the agency was acting "to secure America's critical supply chains." The restrictions apply only to new devices requiring FCC authorization and do not affect products already approved before the order.

A widening technology decoupling

The robot ban is the latest in a series of US measures targeting Chinese technology dominance. Washington has already restricted advanced semiconductor exports to China, increased tariffs on Chinese electric vehicles, and banned Chinese-made drones over comparable national security concerns. The Pentagon recently placed Unitree on its list of companies it said have ties to the Chinese military, a claim Beijing "firmly opposes."

Of the roughly 15,000 humanoid robots shipped globally in 2025, six of the world's 10 largest manufacturers are based in China, according to Omdia. Chinese firms including Unitree, UBTech, AgiBot, Leju Robotics, Engine AI, and Fourier Intelligence have scaled production faster than international competitors by leveraging lower costs and state-backed policy support.

The ban could also disrupt US-China technology collaborations. Nvidia in June revealed a humanoid robot reference design using the chassis of Chinese manufacturer Unitree, highlighting the interdependence between American chip designers and Chinese hardware producers.

China's embassy in Washington said Beijing "firmly opposes" the politicization of trade and will "take all necessary measures" to safeguard its interests. The commerce ministry on Thursday called the ban a severe damage to bilateral relations and demanded its withdrawal.

"It's a steady drumbeat of potential flashpoints heading into the Trump-Xi summit planned for September," said Samm Sacks, a senior fellow at New America focusing on Chinese technology policies.

This article is for informational purposes only and does not constitute investment advice.