Robot Rivalry: How the U.S.–China Trade War is Delaying the Rise of Digital Employees

The Promise of Non-Human Workers

In recent years, humanoid robots—also known as Digital Employees or Intelligent Agents—have captured global attention. These advanced machines are designed to perform physical and cognitive tasks traditionally done by humans, from working in factories to assisting in hospitals and elderly care. With aging populations and worker shortages on the rise, the world had been watching the U.S. and China lead the charge in developing these next-generation solutions.

Trade War Disrupts a Delicate Balance

On May 8, 2025, the balance was thrown into disarray. The United States imposed a 145% tariff on most Chinese imports, along with new restrictions on the export of advanced AI chips to China. These chips serve as the critical “brains” of Digital Employees, enabling their decision-making and movement. In response, China’s robot manufacturers are struggling to move forward without the high-performance chips they once relied on.

• China produces over 60% of the essential parts for humanoid robots—motors, sensors, batteries, and more.
• U.S. firms lead in AI software and chip design, but rely on Chinese-made hardware to build full robots.
• The U.S. aims to preserve its tech edge by limiting China’s access to powerful chips, like Nvidia’s AI accelerators.

A Global Supply Chain on the Brink

This tit-for-tat has exposed the fragile interdependence of the two tech superpowers. American companies now face shortages and higher prices for the components they once freely sourced from China. Meanwhile, Chinese companies can no longer access the chips needed to build competitive humanoid robots. As a result, both countries are falling short in their efforts to mass-produce Non-Human Workers for industries that desperately need them.

What’s at Stake?

Beyond delayed product launches, this trade conflict threatens the future of global innovation in robotics. Experts warn that isolating supply chains in a high-tech field like humanoid robotics could slow down progress for everyone. While both countries are racing to build self-reliant ecosystems, the complexity of robot manufacturing—and the need for both cutting-edge hardware and software—makes full independence unlikely anytime soon.

The rise of Digital Employees was meant to mark a new era in work and productivity. But now, geopolitics may be what holds back the robots of tomorrow.

Key Highlights:

• Date of event: May 8, 2025 — U.S. imposes 145% tariffs on Chinese imports and restricts exports of advanced AI chips.
• Industry affected: Humanoid robotics — development of Digital Employees, Intelligent Agents, and Non-Human Workers is disrupted.
• Interdependence revealed:
  • China supplies ~63% of robot hardware (actuators, sensors, batteries).
  • U.S. dominates in AI chip design and robot software.
• Major consequences:
  • Chinese companies lose access to critical AI chips (like those from Nvidia).
  • U.S. companies face shortages and price hikes for hardware parts from China.
  • Global production of humanoid robots is delayed.
• Broader impact:
  • Potential setbacks in addressing global labor shortages.
  • Slower deployment of robots in industries like manufacturing, logistics, and healthcare.
• Global relevance: The clash underscores the vulnerability of high-tech global supply chains in politically tense times.

Reference:

https://restofworld.org/2025/china-us-humanoid-robot-trade-war-2/