Trump administration bans Chinese hardware with eye on AI race

The Federal Communications Commission on Tuesday announced it would ban imports of Chinese robots and power inverters, citing national security threats.

Why it matters: The action targeting China comes as the race between Beijing and Washington to dominate AI heats up.

How it works: Power inverters, a key part of the electricity infrastructure needed to power AI data centers, and new humanoid and quadruped robots will be placed on a list of equipment deemed by the administration to pose "unacceptable risk to the national security of the U.S. or the safety and security of U.S. persons."

The administration determined that these foreign-produced products, regardless of the manufacturer's nationality, pose that level of risk.

In practice, the move is expected to hit China the hardest.

Some foreign manufacturers would still be able to sell their products in the U.S. if they receive conditional approval from officials.

Threat level: The administration argues that advanced robots' networked capabilities could be exploited to spy on Americans, bolster foreign intelligence capabilities or be remotely commandeered by malicious actors.

It also says that the growing role of power inverters in the U.S. electrical grid has created new vulnerabilities to cyberattacks and supply chain manipulation.

Last year, two researchers found China-based manufacturer Unitree Robotics pre-installed an apparent backdoor on its popular Go1 robot dogs that allowed anyone to surveil customers around the world.

The big picture: The number of new robots deployed each year has more than doubled from a decade ago, now topping 500,000 units globally.

But China is ahead on the robot revolution with more than 2 million industrial robots inside its factories — five times more than the U.S.

What we're watching: The Trump administration is also grappling with how to deal with software from China, as open-source models spark concerns among some policymakers.