U.S. bans foreign-made robots as Brazil splits AI investment between superpowers

The United States escalated its technology restrictions this week, with the Federal Communications Commission banning imports of new foreign-made robots—including Chinese humanoid models and popular robot vacuums—citing cybersecurity vulnerabilities. The move forced at least one major U.S. distributor to pivot its entire business model toward domestic manufacturing.

RoboStore, the largest U.S. distributor of Unitree's humanoid robots, shut down its distribution operations following the July ban and accelerated plans to open a U.S. robotics manufacturing facility. The company, now operating as Robo Inc., is developing healthcare robots, security quadrupeds, and educational platforms using 3D-printed prototypes.

The ban follows legislative efforts including the American Security Robotics Act and the GUARD Act, which frame foreign robotics as national security threats. RoboStore's pivot illustrates how quickly the regulatory landscape is reshaping the robotics supply chain—the company had already begun transitioning before the formal ban took effect.

Brazil hedges between tech superpowers

While the U.S. tightens restrictions, Brazil announced 2.3 billion reais ($444 million) in AI investments split strategically between American and Chinese technology firms. The allocation reveals how non-aligned nations are navigating the AI race without choosing sides.

Roughly 1.3 billion reais ($251 million) will fund a Rio de Janeiro supercomputing project developed with China's Huawei and iFlytek, focused on large language model development. A separate 1 billion reais ($193 million) tender for a supercomputer in Rio Grande do Norte—expected to rank among the world's ten most powerful AI machines—will likely go to Nvidia, according to government officials.

"The strategy is not to depend on a single company, technology or country," Brazil's government stated, framing the dual-sourcing approach as data sovereignty rather than geopolitical hedging.

Chip war pressure intensifies

The robotics ban comes as the U.S. prepares to force the Netherlands to completely ban ASML from selling chip-making equipment to China. The Match Act, currently before Congress with bipartisan support, would prohibit ASML from selling even older deep ultraviolet lithography (DUV) machines to Chinese customers or maintaining already-delivered equipment.

ASML is the sole manufacturer of extreme ultraviolet lithography machines required for advanced chip production. The Netherlands has already restricted sales of ASML's most advanced equipment under U.S. pressure; the Match Act would extend that to the company's entire product line and allow Washington to impose sanctions if the Dutch government refuses compliance.

Dutch officials are lobbying against the legislation, but the bill's inclusion in the U.S. defense budget—which typically passes—suggests limited room for negotiation. The U.S. can also threaten to disrupt ASML's American supply chain, a tactic that has previously succeeded in securing Dutch cooperation.

Manufacturing returns home

Robo Inc.'s manufacturing pivot reflects a broader shift. The company is using 3D printing to prototype healthcare robots that can take vital signs, security quadrupeds, and educational humanoid platforms specifically designed to meet "US-compliant" requirements that universities are increasingly demanding.

"Universities are looking for a US-compliant product," said RoboStore founder Haggerty. The company expects to produce commercial versions from its new facility, though it continues supporting existing customers with parts and repairs for their Unitree robots.

The timing is notable: China's Unitree Robotics shares surged 620 percent in its Shanghai market debut earlier this week, lifting the company's market cap to $66 billion. The Hangzhou-based company shipped over 5,500 humanoid robots globally last year and unveiled a model capable of jumping two meters high—just as its access to the U.S. market was being cut off.

The regulatory actions create an awkward situation: Chinese robotics companies are demonstrating technical leadership and commercial traction at precisely the moment U.S. policy is designed to exclude them. Whether domestic manufacturers can fill the gap—and at what cost—remains an open question.