Lutnick orders security probe of Chinese robots backed by state subsidies

US Commerce Secretary Howard Lutnick [EPA]
US Commerce Secretary Howard Lutnick [EPA]

US Commerce Secretary Howard Lutnick has signaled the possibility of additional restrictions on Chinese robot imports, as robots and automated equipment emerge as a new flashpoint in the technology and trade rivalry between Washington and Beijing, Politico reported Tuesday.

Lutnick told a closed-door meeting with executives from more than 12 companies — including SpaceX, Boston Dynamics, JPMorgan Chase, Goldman Sachs and Siemens — that the Commerce Department is examining whether Chinese robots receiving government subsidies pose a national security threat.

Chinese-made robots are already subject to tariffs. Politico interpreted Lutnick's remarks as suggesting that stronger measures, including additional regulations or import restrictions, could follow depending on the outcome of the probe.

At the meeting, Lutnick was quoted as saying: "The coming arms race is robots. We don't want robots that are nationally subsidized attacking the United States. They must be made in America, and we're going to start the research right now."

Within the Trump administration, there is growing recognition that the robotics industry is becoming the next battleground in the US-China technology competition, following AI chips.

Last year, China's industrial robot exports surged 48.7 percent from the previous year, surpassing imports and making China a net exporter for the first time in history. In the humanoid robot segment, China's Unitree shipped roughly 36 times more units than its American competitors.

Concerns are gaining traction within the US government that Chinese robots backed by state subsidies could dominate global markets before American manufacturers are able to compete.

One meeting attendee said: "Ultimately, putting a Chinese body on top of an American brain is a very, very bad strategic plan."

The gathering focused on how to reverse decades of manufacturing offshoring and rebuild a domestic industrial base capable of producing everything from semiconductors to robots.

The Office of Strategic Capital under the Department of Defense is reviewing low-interest loans for US robotics firms Foundation Robotics and Standard Bots.

Standard Bots CEO Evan Beard, who attended the meeting, said the government "understands the urgency and is actually acting, not just talking," adding that it is "putting real money in to make reshoring viable."


mokiya@heraldcorp.com