Chinese Robotics Firm Unitree Warns U.S. Restrictions Threaten Growth Ahead of IPO

Unitree Technology, a Chinese robotics manufacturer preparing for a public listing, warned in an IPO filing that potential U.S. trade restrictions could significantly limit its overseas growth. The disclosure highlights growing regulatory risks for Chinese tech firms seeking to operate in the crucial American market.

IPO Filing Highlights Regulatory Risks

In a document filed ahead of its planned initial public offering on Shanghai’s STAR Market next month, the Hangzhou-based company stated that future models could be excluded from the U.S. Unitree, known for its humanoid and quadruped robots, also noted that any additional tightening of U.S. policy could disrupt sales of its current products, including the potential withdrawal of existing approvals.

FCC Adds Robots to 'Covered List'

The company's warning follows a move by the U.S. Federal Communications Commission (FCC) on Tuesday to add foreign-made advanced robots to its "Covered List." This action restricts these products from obtaining the necessary equipment authorization required for sale and operation in the United States unless they receive an exemption or conditional approval.

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While Unitree confirmed that its existing robot models have already received FCC certification, the new rule poses a significant hurdle for future product launches. Products already authorized can remain on the market for now.

U.S. Market Significance

The United States represents a major source of revenue for Unitree, making the new restrictions a material risk for prospective investors. According to the filing, the company's reliance on international sales is substantial:

• Overseas revenue accounted for more than 40% of total revenue in each of the last three disclosed reporting periods.
• U.S. sales specifically represented 18.39%, 19.54%, and 13.30% of total revenue over those same periods.