US does its robotics industry no favours by fencing it off from China

The US government has faced criticism for blocking Chinese robotics from its market, ostensibly to address cybersecurity and supply chain risks. However, the real motivation, according to industry insiders, is to prevent Chinese manufacturers from dominating the robotics sector. The US Federal Communications Commission (FCC) has added various robotic technologies to its Covered List, preventing their authorization for sale in the US.

While the security concerns are valid, the FCC has effectively shielded federal agencies from using potentially compromised machines, but at the cost of limiting American firms' growth. This move echoes similar protectionist policies in the past, like those applied to solar panels, which led to stagnation or decline of domestic industries.

Historically, countries that embraced exports and opened their markets, such as Japan and South Korea, have achieved greater success. The US, however, has taken the opposite path, potentially limiting its own robotics industry's development. Despite claims of future growth, many American robotics firms still lack the production capabilities to compete with China.

The outcome of this standoff will largely depend on how Chinese and American firms adapt to the changing market dynamics.