The US is moving to curb China’s rise in humanoid robotics with a proposed law that would effectively shut China-made robots out of federal procurement on national security grounds.
For Hyundai Motor, the shift could open a strategic window. As Chinese rivals face restrictions in the US market, the focus is now turning to whether the curbs will extend beyond finished robots to components and materials — potentially reshaping the entire robotics supply chain.
On March 26, two US senators — one Republican and one Democrat — introduced the American Security Robotics Act, which would bar the federal government from using federal funds to purchase “unmanned ground vehicles” and “robotic systems” made in countries the US considers hostile, such as China.
The bill, which aims to prevent potential infiltration of national security systems and public infrastructure, broadly targets autonomous patrol robots, mobile inspection platforms, logistics robots and humanoid robots, depending on their data-collecting function and level of autonomy.
While the proposed law does not explicitly prohibit robotic parts, sources say components essential for data collection and control, such as cameras, sensors and controllers, are effectively included when embedded within restricted robotic systems.
Hardware components manufactured in China, including actuators, the “muscles” that enable movement; grippers, human-like robot hands; and motors, are not currently restricted. The rules also would not extend to upstream materials such as rare earth metals, where China dominates global processing and production.
Samsung Securities analyst Im Eun-young said in a recent report that the bill will likely take effect early 2027, while restrictions on operating existing equipment would begin at the end of 2027.
Currently, the scope of the bill is limited to robots procured by US public institutions. However, industry insiders expect it to expand across private supply chains, particularly where federal funding is involved.
This could ease pressure from Chinese competitors in the US humanoid robotics market, benefiting Hyundai Motor and its Massachusetts-based subsidiary, Boston Dynamics.
An industry source familiar with the matter said, “Hyundai is quickly moving to build its own humanoid robotics supply chain by leveraging its well-established domestic parts vendors. The company recently invited select suppliers to present proposals, with three to four vendors competing in bids for each robotics component category.”
The effort is in line with the automaker’s broader plan to establish a US-based humanoid robot production plant with an annual capacity of 30,000 units by 2028. Its auto parts subsidiary, Hyundai Mobis, is supporting the initiative by building a local robotics components facility. Initially focusing on actuators, the facility could potentially expand to include grippers.
Boston Dynamics is also expected to play a key role in shaping US robotics policy by contributing to the development of regulatory frameworks — including measures that could structurally limit the entry of China’s humanoid robots — as well as broader industry support initiatives.
The Special Competitive Studies Project, a US-based private think tank, recently launched the “National Commission on Advanced Manufacturing Robotics.” Boston Dynamics Vice President Brandon Schulman will serve as a commissioner, contributing to setting strategic priorities such as strengthening supply chains, enhancing global competitiveness and reinforcing the ecosystem to secure US leadership in robotics. The final robotics policy roadmap is scheduled for release in March 2027.
Despite Hyundai’s competitive advantage over Chinese players, experts caution that US restrictions on Chinese robots could extend to key materials — mirroring its approach in the military platforms and the electric vehicle sector, where policies effectively aim to restrict or disadvantage Chinese-dominant supply chains.
According to Choi Hyouk-ryeol, an intelligent robotics professor at Sungkyunkwan University, “a complete decoupling from China in robotics components such as critical minerals is almost impossible,” noting that Korean-made humanoid robot motors are likely to rely heavily on Chinese rare earth magnets — similar to automotive motors.
Unlike the EV sector — where restrictions have largely targeted Chinese-made batteries rather than upstream rare earth materials — the robotics supply chain could face broader constraints. Washington is already moving to ban Chinese-origin rare-earth magnets and materials across defense platforms starting 2027. Such measures could expand to humanoid systems in the robotics sector, which rely on the same rare-earth-based components.
“As Tesla’s Optimus humanoid robot is significantly more reliant on Chinese parts and components compared with Boston Dynamics, the US is unlikely to immediately impose a blanket ban on Chinese sourcing,” Choi said. “However, as the country moves to secure a non-China rare earth supply chain for military hardware systems, maintaining price competitiveness could become increasingly challenging for US humanoid robotics companies.”
China’s grip on the global rare earths market remains strong. Visual Capitalist reported in November that China holds about 44 million metric tons of rare earth reserves, accounting for roughly 48 percent of global output. An even greater vulnerability lies in processing, where China makes up around 85 percent of ammonium chloride exports — an essential chemical used in refining.
Originally written by: Byun Hye-jin (The Korea Herald)
Source: Asia News Network
Published on: 7 April 2026
Link to original article: US moves to curb China robots, opens door for Hyundai
