US Robotics Ban Threatens Startups Amid China Supply Chain Dependence

The U.S. Federal Communications Commission has implemented a sweeping ban on foreign-made robots, including humanoids, quadrupeds, and household robots like vacuums and lawn mowers, citing national security risks. The ban, which took effect last month, prohibits the sale of new models of these devices unless they are assembled in the U.S. and contain at least 65% domestically produced components by value. This requirement will rise to 75% in 2029.

While the rule does not apply to devices already on the market or to robots imported for research and development, startup founders in the robotics industry are voicing concerns. Many rely on China’s comprehensive electronics supply chain, which dominates global manufacturing. Anto Patrex, founder of San Francisco-based CosmicBrain AI, which develops robots for tasks like delivery and laundry, told Rest of World, "Look at Apple, it’s made in China. How do you expect even more complicated products like robots to be built in America? I have no idea. Till now, we are all figuring it out."

The FCC’s "Covered List" was established in 2021 to allow the banning of devices deemed national security threats. Previous additions include drones, routers, and products from Chinese telecom companies Huawei and ZTE. The inclusion of robots follows security concerns, including vulnerabilities found in Unitree robots and a 2023 incident where a DJI robot vacuum user gained access to thousands of other devices through a system flaw. DJI, a leading Chinese drone manufacturer, also produces robot vacuums.

The U.S. government aims to prevent long-term dependency on Chinese robotics supply chains. Adam Chan, senior adviser to FCC Chair Brendan Carr, stated on the ChinaTalk podcast, "The least expensive and easiest time to address a supply chain dependency is right now," emphasizing the ban’s role in incentivizing domestic manufacturing.

However, industry leaders argue the policy places undue strain on startups. Michael Perry, head of commercial strategy at Houston-based Persona AI, which develops industrial humanoid robots, told Rest of World that while clients have increasingly requested non-Chinese components for security reasons, sourcing these parts remains challenging. "You need to provide the carrot as well as the stick," Perry said. "Right now, you’re only providing the stick."

Elizabeth Williams, founder of New York-based Gemma, which designs robots for home beauty applications, echoed these concerns. "If we’re not going to work with prototyping and iterating quickly in China, then tell us how you’re going to incentivize manufacturing firms here and robotics founders here," she said.

China’s dominance in robotics manufacturing stems from decades of state support, a strong engineering workforce, and low-cost labor, enabling rapid prototyping and production. In 2025, nearly 90% of humanoid robots sold globally were Chinese, according to research firm Omdia. Many U.S. startups and universities rely on Chinese robots like Unitree for research and software development.

The FCC’s move is part of escalating trade tensions between the U.S. and China. China’s Ministry of Commerce criticized the ban as an overreach of national security concerns and in August imposed trade restrictions on several U.S. entities while tightening export controls on drones destined for America.

Some U.S. robotics manufacturers support the ban, viewing it as protection against cheaper Chinese competition. Agility Robotics, which assembles its warehouse robots in Oregon, stated in a press release that the rule was a necessary step toward addressing threats posed by foreign robotics supply chains. Antonio Li, founder of San Francisco-based Nori Robotics, also praised the ban. "For us, it’s no doubt a positive thing," he said.

Critics, however, argue for a more gradual approach. Kyle Chan, a fellow at the Brookings Institution, suggested that incremental tariffs on Chinese robots and components would better support the growth of the U.S. robotics industry without burdening startups with high manufacturing costs. "It can really hold back U.S. robotics innovation," he said.

The FCC has previously banned foreign-made drones and internet routers, and the Trump administration recently announced new tariffs on drones to bolster domestic production. The latest robotics ban adds pressure on an industry already grappling with supply chain challenges and geopolitical tensions.