Venture Investor Proposes Singapore Route for Chinese Robotics Firms Facing U.S. Import Ban

Chinese robotics manufacturers shut out of the United States by recent import restrictions could maintain access to American buyers by shifting core business functions to Singapore, according to a venture capital firm backed by Singapore state investor Temasek.

Choon Chong Tay, managing partner at Shanghai-based Vertex Ventures China, outlined a strategy where Chinese-linked technology startups relocate their primary operations, local hiring, and control over essential components to Singapore. Under this framework, companies that establish “substantial content” in the city-state—including local control over microchips powering the machines—could potentially meet criteria to export to the U.S.

Tay acknowledged that the potential workaround remains untested, stating, “These are some ideas that we are actually now trying to think about.” According to U.S. government standards, international trade regulations determine a product’s country of origin based on where it undergoes substantial transformation. Tay argued that market economics may eventually override geopolitical friction, asserting that American consumers and businesses require affordable automated hardware that domestic manufacturers do not currently produce. Speaking about safe, Singapore-certified equipment, Tay asked, “What other reason do you have to not allow us to export?”

The strategic proposal comes after the U.S. administration implemented restrictions in July barring new foreign-built humanoid and other mobile robots from entering the country on national security grounds. The trade barrier blocked access to the world’s largest market at a time when Chinese manufacturers have established a dominant role in commercializing advanced robotics hardware.

Losing access to American customers poses a notable financial hurdle for prominent Chinese developers such as Unitree Robotics, an enterprise in Vertex’s investment portfolio. Kangyuxiao Li, an equity analyst at Morningstar, reported that Unitree generates over 40 percent of its total revenue outside China, with the U.S. contributing roughly 18 percent. Li noted that losing access to the American market could noticeably impair the firm’s growth prospects.

Industry analysts emphasize that the trade actions reflect a deepening rift between the world’s two largest economies in high-technology sectors. Dien Wang, an equity analyst at Bernstein, noted that the robotics ban represents a milestone in U.S.-China technology decoupling that could expand to intelligent vehicles and fixed industrial robots. Wang added that China retains significant strategic leverage through its near-monopoly on rare earth materials, which are critical components for the electric motors and actuators used in humanoid robotics.

Vertex Ventures China manages nearly $3 billion across funds denominated in U.S. dollars and Chinese yuan. Beyond Unitree, the firm’s hardware-focused portfolio includes autonomous driving chipmaker Horizon Robotics, logistics automation provider Geek+, surgical robotics developer Edge Medical, and photonics chip producer Lightelligence.

Background

In recent years, the United States and China have increasingly engaged in trade disputes and technological competition, with Washington placing restrictions on advanced semiconductor exports, artificial intelligence technologies, and software linked to Chinese vendors. Humanoid and mobile robotics represent a key emerging sector in this competition, combining advanced hardware manufacturing with artificial intelligence.

Singapore has frequently functioned as an international trade hub and neutral jurisdiction for multinational corporate headquarters, operating under established trade agreements with both Western nations and Asian economies. However, under standard international trade law, simply routing finished goods through a third country without fundamental manufacturing or engineering changes does not alter a product’s country of origin for customs purposes.