Commerce Secretary Howard Lutnick reportedly signaled a potential crackdown on Chinese robotics during a private meeting on Monday, warning that heavily subsidized imports could overrun U.S. markets before American manufacturers can catch up.
Three anonymous attendees told POLITICO that Lutnick's department is investigating these imports and may take decisive action once the review is complete. The Trump administration increasingly views China's state-backed robotics sector as a national security concern, with Lutnick warning: "We don't want state subsidized robotics attacking us in America, this is the arms [race] that is coming — robotic arms are coming."
The meeting included executives from companies like Space Exploration Technologies Corp (SpaceX (SPCX)), Boston Dynamics, JPMorgan Chase (JPM), Goldman Sachs (GS), Siemens (SIEGY), and Rockwell Automation (ROK). They discussed strategies for reversing decades of manufacturing offshoring and rebuilding the industrial base.
Rebuilding U.S. robotics manufacturing will require significant investment. The Defense Department's Office of Strategic Capital (OSC) is offering low-cost loans to attract private funding, reportedly working on financing packages for robotics firms Foundation Robotics and Standard Bots, though deals are not yet finalized.
The Commerce Department did not immediately respond to a request for comment.
China Widens Lead in Humanoid Robots
This development comes amid escalating trade tensions. Last week, Beijing imposed export controls on ten U.S. industrial suppliers, including rare earth miners like MP Materials Corp (MP) and USA Rare Earth Inc (USAR), and drone manufacturers, in response to the Pentagon's earlier blacklisting of Alibaba Group Holding Ltd (BABA), Baidu Inc (BIDU), and BYD Co Ltd (BYDDY).
Meanwhile, China's robotics industry is outpacing its U.S. counterparts. In 2025, China's Unitree Robotics shipped over 5,000 humanoid robots globally, while Tesla Inc (TSLA) shipped roughly 150 Optimus units. Unitree's robots start at about $5,900, far below Tesla's Optimus, which is expected to cost more than $20,000 and potentially over $40,000.
A February report suggested that Xpeng Inc (XPEV) is set to begin construction of a 1.18 million-square-foot humanoid robot factory in Guangzhou this quarter and plans to start mass production of its IRON robot by year-end. Positioned as a rival to Tesla's Optimus, the company aims to produce more than 1 million units by 2030 and deploy the robots in applications such as retail services and tour guiding.
Andrew Kang, CEO of Robo Strategy and a crypto investor, believes humanoid robotics represents the largest investment opportunity since Bitcoin (BTC), arguing the sector could eventually reach a market capitalization worth tens of trillions of dollars as robots become widely adopted across industries and everyday life. Moreover, the cost of humanoid robots is significantly lower than that of the average American worker, making it a lucrative investment opportunity, he stated.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.
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