The US is attempting to remove foreign robots, but the domestic supply chain may not be ready at this time.
Creating a robot supply chain from the ground up requires years that Washington is currently unwilling to allocate.
The FCC has a history of utilizing its Covered List to push Chinese technology out of American markets, with robots now being the latest focus. Foreign-made humanoid robots, quadrupeds, and even robot vacuums must now be predominantly manufactured in the U.S. to be sold domestically (as reported by Rest of World).
What are the specifics of the new regulation?
Last month, the FCC included “advanced robotic devices” in its Covered List, the same national security list that has previously restricted products from Chinese firms such as Huawei and ZTE. New models of foreign humanoids, quadrupeds, robot vacuums, and even lawn mowers are now prohibited from entering the U.S. market.
Only products assembled in the U.S. that source at least 65% of their component value domestically are eligible. This requirement will increase to 75% by 2029. While the policy does not explicitly target any specific country, it is broadly perceived as an effort to reduce Chinese imports.
The positive aspect is that products currently available for sale are not impacted. Robots imported solely for research and development purposes (not for commercial distribution) remain exempt from this regulation for the time being.
How are startups responding to this?
Startup founders indicate that reaching the 65% local sourcing requirement is nearly unachievable at present. Many motors, sensors, and actuators are either prohibitively expensive, take too long to procure, or are, unfortunately, simply unavailable within the U.S. The situation has escalated to the point where employees have reportedly transported parts from China in their luggage to keep prototypes moving forward.
Michael Perry from Persona AI stated succinctly: “You need to provide the carrot as well as the stick.” Nevertheless, not everyone is concerned; Agility Robotics from Oregon and San Francisco's Nori Robotics are both in favor of the rule, asserting that it will ultimately protect them from less expensive Chinese competitors.
That said, the regulation undeniably complicates sourcing in the near term. China's dominance in robotics manufacturing is not coincidental. Decades of state investment, a robust engineering workforce, and a surge in electric vehicle production have established the kind of supply chain for sensors, batteries, and actuators that robots also depend on.
The outcome: Chinese-made humanoids are projected to account for nearly 90% of all sales globally by 2025, according to research firm Omdia.
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The US is attempting to remove foreign robots, but the domestic supply chain may not be ready at this time.
The FCC has recently prohibited foreign-manufactured robots that do not meet a 65% domestic component requirement.
