America wants to wean itself off Chinese technology. Will the pain pay off?
US Push to Reduce Reliance on Chinese Technology Raises Costs and Supply Challenges
Qwenews.com – For American technology companies, the effort to move away from Chinese components is becoming a practical test of whether domestic industry can quickly replace a supply network built over decades. The policy goal is clear: reduce exposure to Chinese systems and manufacturing. The immediate reality, however, is that many businesses still depend on China for the affordable, high-volume parts that make modern products possible.
Rajat Bhageria, who founded San Francisco-based Chef Robotics seven years ago, is confronting that problem directly. His company sells robotic arms to food manufacturers, helping automate the preparation of ready-made meals. Like many robotics businesses in the United States, Chef Robotics has relied substantially on Chinese-made components.
China’s manufacturing scale, pricing and established supplier base have made it a central source of parts used in competitive technology products worldwide. Yet as Chinese companies become increasingly prominent in industries such as electric vehicles and factory automation, the United States has expanded restrictions on the use of Chinese technology under President Donald Trump.
The restrictions encompass drones, mobile robots and other important electronic products. Federal officials have framed the measures as a way to limit national-security risks, protect government and consumer information, and support manufacturing within the United States.
From Lowest Cost to Supply-Chain Security
Bhageria said the calculation facing companies has shifted. Previously, the central question was whether a supplier could provide the strongest component at the lowest price. Now customers and investors are pressing companies to explain why they continue to use parts made abroad.
“For a while of course, it was like, ‘Hey, let’s find the best components, and let’s find them at the cheapest price,’” Bhageria said.
“Why are you still using foreign-made parts?”
Chef Robotics completes final assembly of its machines in the United States. Still, the utensil-like components fitted onto the ends of the robotic arms are currently produced in China. Bhageria began exploring an alternative last year as tariffs on Chinese imports increased, but finding a replacement proved considerably more difficult than expected.
Manufacturing the plastic grabbers domestically was too expensive, he found. Suppliers beyond China often lacked the technical capacity to fulfill the company’s requirements. Even well-regarded machine shops in the United States were unable to take on the work.
“It’s actually been a much harder process than we had initially hoped,” he said. “We will even talk to some really good machine shops in the US and they’re like, ‘We can’t do this.’”
His company’s components have not yet been directly covered by the bans, giving it time to look for other sources. But Bhageria is concerned that the restrictions could eventually extend to fixed robotic arms and related equipment.
“You can imagine what’s the next shoe to drop, right? Like, the next thing might be fixed robot arms.”
A Manufacturing Gap Years in the Making
The difficulty is not limited to a single startup or one category of robotic equipment. Years of outsourcing have reduced the ability of American manufacturers to meet demand for a broad range of electronic products. Rebuilding those capabilities takes time, investment, specialized workers and dependable networks of component suppliers.
Ben Armstrong, executive director of MIT’s Industrial Performance Center, studies manufacturing competitiveness and automation. He said much of everyday digital life still depends on components made overseas and products assembled outside the United States.
“A lot of our digital lives are built on the infrastructure of foreign-made components and goods assembled abroad, and that’s not going to change anytime soon,” said Armstrong.
For companies that need advanced electronics as well as basic parts, the transition can mean longer lead times and more expensive products. Universities, consumers and industrial buyers may also feel the consequences when supply is limited or domestic alternatives remain difficult to obtain.
“We just don’t know how to make them in the US. So, there will be a learning curve, and during that learning curve process, the price will be high,” he said.
That learning curve illustrates the central tension in the policy debate. Restricting Chinese technology may reduce dependence on an overseas rival and create incentives for domestic production. At the same time, it can make it harder for US companies to compete with Chinese firms that already have access to extensive manufacturing ecosystems.
Restrictions Continue to Expand
The list of affected products has continued to grow. In July, the Federal Communications Commission added power inverters and newer forms of advanced robotics to its restricted foreign-technology list. The category includes humanoid robots capable of running, jumping, dancing and fighting.
The United States has also barred vehicles that use Chinese software and imposed a 100% tariff on Chinese electric vehicles. Tariffs affecting drones took effect last month, following a ban on new drone models in December.
The pace of policy change has created challenges even for major American manufacturers. Ford faced criticism from the Trump administration earlier this month over ties to Chinese technology, particularly its use of CATL batteries for electric vehicles. The automaker rejected the assertion that its decisions amounted to transferring US manufacturing to Chinese entities.
For companies further down the supply chain, the adjustment can take years. Michael Murray, chief executive of Kopin Corporation, which produces optical components for US military drones, said moving production for certain microdisplay screens out of China has required more than two years.
That lengthy process offers a broader lesson for businesses trying to remake their supply chains. A policy decision can be made quickly, but manufacturing capacity cannot be created overnight. Equipment, specialized materials, trained labor and qualified suppliers must all be available before companies can reliably replace established production networks.
For Bhageria, beginning the search now may soften the financial impact if future restrictions reach his company’s products. But the experience also shows why the effort to separate US technology manufacturing from China is likely to remain costly and complex. The question is no longer simply whether American companies want alternative suppliers. It is whether those suppliers can deliver the necessary scale, technical capability and price to keep US businesses competitive.
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