On March 17, 2026 the House Homeland Security Subcommittee on Cybersecurity and Infrastructure Protection held a hearing on the national security risks of Chinese dominance in artificial intelligence (AI) and robotics. The witnesses included leaders from Boston Dynamics, Scale AI, the Association for Uncrewed Vehicle Systems International (AUVSI) and the Council on Foreign Relations. The hearing was framed around a specific warning: China is executing the same playbook it used to dominate the global drone industry, and the US is at risk of falling behind in robotics the same way the country fell behind in drones.
McGuireWoods Consulting government affairs professionals are tracking not just the threat assessment, but the affirmative policy framework that appears to be taking shape. Here are the key signals:
- Production tax credits, loan guarantees, and advance market commitments. AUVSI CEO Michael Robbins urged Congress to deploy these tools specifically for domestic robotics manufacturing, paired with workforce development tax credits to offset training costs for the robotics-age workforce.
- Federal procurement bans on robotic systems linked to the People’s Republic of China. Multiple witnesses called for prohibitions on federal agencies and contractors procuring robots or AI systems from companies subject to Chinese national security laws. The House fiscal year 2026 National Defense Authorization Act included a provision banning federal procurement of uncrewed ground vehicles from countries of concern.
- A “Trusted Partner” blue list for allied suppliers. Rush Doshi of the Council on Foreign Relations recommended adopting a framework similar to what the Federal Communications Commission recently established for uncrewed systems. This structure includes broad restrictions on adversary-linked products combined with a preferred supplier list, or blue list, for allied and partner manufacturers.
- Cybersecurity and Infrastructure Security Agency restrictions on PRC robots in critical infrastructure. Doshi also recommended binding guidance prohibiting PRC-manufactured robotic systems from deployment in ports, energy facilities, water treatment systems and government buildings.
- Building “allied scale.” Perhaps the most important concept from the hearing — Dr. Doshi called for the US to build “a common market for robotics among likeminded states that treats those within it better than the PRC.” He specifically named Japan’s supply chain as the allied partner the US should incentivize to localize production here.
What does this mean for the robotics industry and for economic development?
If this policy trajectory holds, it will be structurally similar to what the CHIPS Act did for semiconductors: a combination of restrictions that push Chinese-linked products out of sensitive markets, as well as incentives that pull allied manufacturers into US-based production. The companies that establish domestic manufacturing early will be positioned inside the blue list perimeter before the regulatory framework hardens.
The federal signals resulting from this hearing will translate into plants on the ground if states are ready with competitive incentive packages, workforce programs and shovel-ready sites. Our consultants continue to study which states are moving in this direction and how companies in this space should position themselves to leverage these policy developments.
The McGuireWoods Consulting Infrastructure and Economic Development team will be watching this space closely.
