The Federal Communications Commission (FCC) has a history of utilizing its Covered List to limit the presence of Chinese technology in the American market. Recently, the agency has made robotic devices its newest target, mandating that foreign-made humanoids, quadrupeds, robot vacuums, and even lawn mowers need to be predominantly manufactured in the United States to be sold in the country, according to Rest of World.
So what does the new rule actually require?
Last month, the FCC added “advanced robotic devices” to its Covered List. This is the same national security roster that has previously resulted in bans on technologies from Chinese companies like Huawei and ZTE. As a result, new models of foreign-made humanoids, quadrupeds, robot vacuums, and lawn mowers are now prohibited from entering the U.S. market.
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To qualify, models must be assembled domestically and source at least 65% of their component value from within the U.S. This threshold will increase to 75% by 2029. While the policy does not explicitly single out any country, it is widely perceived as a measure aimed at reducing Chinese imports.
Fortunately, existing products that are already on the market are not impacted by this rule. Additionally, robots imported solely for research and development purposes (not for commercial sale) are currently exempt from the regulation.
How are startups actually reacting to this?
Many founders express concern that meeting the 65% local sourcing threshold is nearly unattainable at present. A significant number of essential components, including motors, sensors, and actuators, are either prohibitively expensive, difficult to source quickly, or simply unavailable in the U.S. Some employees have even reportedly transported parts from China in their personal luggage just to keep projects moving.
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Michael Perry from Persona AI encapsulated the sentiment succinctly: “You need to provide the carrot as well as the stick.” However, not all startups view the new rule negatively. Companies like Agility Robotics in Oregon and Nori Robotics in San Francisco welcome the regulation, asserting it will eventually insulate them from cheaper competition from China.
Despite some optimistic viewpoints, the rule undeniably complicates sourcing processes for the immediate future. China’s dominance in robotics manufacturing emerged from a confluence of factors, including decades of state investment and a robust engineering workforce. This competitive edge is evident in the sector’s supply chain, which is vital for producing components such as sensors, batteries, and actuators—crucial for robots.
According to Omdia, a research firm, Chinese-made humanoids are projected to account for nearly 90% of all global sales in 2025. This statistic underlines the significant challenges that American companies may face in the evolving landscape of robotics.
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