China Vows Retaliation Over US Humanoids Ban

Washington's latest tech move has Beijing sharpening its claws. On Thursday, China's Commerce Ministry blasted the US Federal Communications Commission's new limits on importing advanced foreign-made robots, including humanoids, calling the step a serious blow to already strained trade ties and warning of retaliation if the decision isn't reversed, per CNBC. The ministry said the FCC had repeatedly brushed off what it described as China's "restrained" approach to product bans and urged Washington to roll back the move. China claims about 85% of the world's humanoid market, Quartz reports, citing the AP.

Analyst Marc Einstein tells CNBC that Beijing could hit back by further curbing rare-earth exports or by tightening access to its market for US firms such as Tesla and Nvidia. "This is bad news for Chinese humanoid producers planning their IPOs in the coming months," he adds. The New York Times notes that it's not even clear if the restrictions will be effective, as components used to build robots are "overwhelmingly" made in China. The nation's warning lands ahead of a planned September meeting between Trump and Chinese leader Xi Jinping, with friction over AI and robotics increasingly central to the relationship.