China threatens retaliation against U.S. humanoid robot ban, says it 'severely damages' relations

• The FCC added foreign-made advanced robotic devices to its import restriction list on Tuesday, though retailers can still import previously approved models
• Chinese companies Agibot, Unitree and UBTech held the top three positions in humanoid robot installations by market share, with Hong Kong-listed UBTech facing particular impact
• China may retaliate by further restricting rare earth sales to U.S. companies and limiting market access for American firms like Tesla and Apple

Summary: China Threatens Retaliation Over U.S. Humanoid Robot Import Ban

The U.S. Federal Communications Commission (FCC) announced Tuesday a restriction on new imports of foreign-made advanced humanoid robots, citing cybersecurity concerns. While the FCC didn't specify a country, the ban allows retailers to continue importing previously approved models.

China's Response:

China's commerce ministry issued a sharp rebuke Thursday, calling the move a severe threat to bilateral economic stability and demanding withdrawal of the decision. The ministry threatened countermeasures if the U.S. proceeds, escalating tech tensions between the world's two largest economies.

Market Impact:

Chinese humanoid robot manufacturers—Agibot, Unitree, and UBTech—currently dominate the global installation market as the top three producers. Hong Kong-listed UBTech faces particular uncertainty regarding planned IPOs in coming months. Robostore, a North American distributor of Chinese humanoid robots, is responding by expanding U.S.-based capabilities.

Potential Retaliation:

According to Counterpoint Research's Marc Einstein, China could deploy two major countermeasures: further restricting rare earth sales to American companies and limiting Chinese market access for U.S. firms like Tesla and Apple.

Geopolitical Context:

The dispute emerges ahead of a scheduled September meeting between Presidents Donald Trump and Xi Jinping. U.S. Treasury Secretary Scott Bessent has indicated potential additional restrictions, while Trump publicly emphasized maintaining American technological leadership over China.

The ban represents another flashpoint in the ongoing U.S.-China tech competition, with implications for global supply chains, bilateral relations, and the emerging humanoid robotics industry. Investors should monitor potential Chinese countermeasures and impacts on affected tech companies.