[Source / Observer Network Xiong Chaoyi] In late March this year, several technology companies displayed their latest humanoid robots in Washington. This event, organized by the "U.S.-China Strategic Competition Special Committee" of the U.S. House of Representatives, originally aimed to showcase American technological strength and promote competition with China in emerging technologies. However, days later, Trump's so-called "reciprocal tariffs" may disrupt the development process of the U.S. in the robotics field, especially in humanoid robots.

Bloomberg reported on April 16 that the current uncertainty in tariff policies is making it more challenging for the U.S. to gain dominance in the Sino-U.S. robot race. The report cited institutional reports stating that key hardware for humanoid robots is mostly produced in China; four out of five major suppliers of visual systems are Chinese companies; even leading U.S. robotics companies still need to procure some materials from China.

An industry organization leader candidly admitted that even if some companies want to relocate manufacturing back to the U.S., there are not even vendors selling some critical components locally, and if there are, the cost is much higher. Under high tariffs, if the price of components surges, these U.S. robotics companies will also be affected.

Bloomberg pointed out that the development of the U.S. robotics industry has benefited not only from today's artificial intelligence (AI) advancements but also from the cost advantages brought by "Made in China." However, Trump almost overnight changed the situation. Besides cost, efficiency must also be considered. A CEO of a robotics startup stated that other countries might fill some supply chain gaps, but what they lack is the efficiency only China possesses.

Apptronik's humanoid robot prototype Bloomberg

Compared to traditional industrial robots, humanoid robots, which have human-like forms and movement capabilities, require more precision parts, including specialized actuators, sensing systems, and computing chips. A recent analysis report from Bank of America shows that most of these critical components are produced in China, which is currently the country with the highest import tariffs imposed by the U.S.

The report cites analysts pointing out that actuators, which typically contain frameless torque motors, planetary roller screws, and precision bearings made in China, account for more than 50% of the total material cost of a robot. The report also found that four out of the five major suppliers of visual systems for humanoid robots are Chinese companies, with costs potentially reaching thousands of dollars.

"If you take a close look at a robot, you'll find it is a complex machine with computers, batteries, cameras, motors, and many different components," said Jeff Cardenas, CEO of Apptronik, which participated in the congressional exhibition in Washington last month. Although Apptronik assembles robots in the U.S., it still needs to procure some materials from China (specific categories were not disclosed). "Now, for many of us, it's uncertain, we're trying to understand the situation, but it changes every day."

Despite Trump's temporary tariff exemptions for multiple countries, the White House still maintains high tariffs on China. Last weekend, the Trump administration first announced exemptions for some electronic products, but then downplayed the extent of these exemptions. The Association for Advancing Automation, an industry organization representing over 1,000 robotics companies in North America, admitted that it is difficult to say whether such tariff exemptions can benefit robotics companies.

"Some companies tell me they want to relocate manufacturing back to the U.S., but we don't even have vendors selling certain critical components locally. Even if there are, the cost is much higher," Bernstein candidly admitted. "If the prices of these components surge, our competitive ability will slow down."

Bloomberg pointed out that unlike the competition between China and the U.S. in AI, China has always had an advantage in the robotics field. Through the implementation of various policies to promote innovation and development, along with strong supply chain support, China has fostered a batch of leading domestic enterprises. The humanoid robots developed by these enterprises can not only perform martial arts performances but can also complete a half-marathon.

Chinese company Unitree Robotics effortlessly performs balancing beam and obstacle course Video screenshot

In recent times, Silicon Valley has also shown some progress, and after years of setbacks, technology investors began injecting hundreds of millions of dollars into robotics startups like Apptronik, Figure AI, and Dexterity. It is reported that tech giants like Apple, Meta, and Tesla are also entering the humanoid robot field.

The report argues that the development of the U.S. robotics industry benefits not only from significant improvements in the environmental adaptability of robots due to AI technology but also from the cost advantages brought by "Made in China." The decline in prices of certain materials used to manufacture advanced robots has also boosted the robotics market.

Aaron Jacobson, a partner at venture capital firm NEA, said, "Mass production of critical components in China has significantly reduced hardware costs, opening up new tracks that were previously unattainable due to high costs for startups."

However, Trump's escalating trade war almost overnight changed the situation. "Everyone was very excited, but tariffs somehow disrupted this momentum," said Kim Losey, CEO of Rapid Robotics, a startup supported by NEA. About six months ago, Rapid Robotics just completed a major strategic transformation, and the speed and cost advantages of the Chinese supply chain were key to this transformation. After Trump's tariff policy was introduced, Losey's first reaction was that they must accelerate their diversified supply chain strategy.

Losey believes that China's advancement in robotics components is a significant advantage that cannot be ignored. Although countries like Germany and Japan can also fill some supply chain gaps, as a robotics company, one must make trade-offs between cost and efficiency.

"They can do it in 36 weeks," Losey said about suppliers in Europe and other markets. "We don't have that time. I asked, 'Can you do it in 36 days?'"

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Original source: https://www.toutiao.com/article/7493931700469973538/

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