US Protectionism: Competition rising

Research evidence excerpt

US Protectionism: Competition rising

Idea

August 3, 2026 10:51 AM GMT

Morgan Stanley Asia Limited+MChina Industrials | Asia Pacific Sheng Zhong

Equity Analyst

US Protectionism: Competition Sheng.Zhong@morganstanley.comMorgan Stanley & Co. LLC +852 2239-7821

Adam Jonas, CFA

Equity Analystrising Adam.Jonas@morganstanley.com +1 212 761-1726

The US announced it will restrict the import of new foreign- Morgan Stanley Asia Limited+

Carlos Chai

Research Associateproduced advanced robotic devices. We see limited short‑term

Carlos.Chai@morganstanley.com +852 3963-3180

impact to China humanoids, but the global roadmap and

Chelsea Wang

ecosystem could be more uncertain long term. We remain Equity Analyst

Jinlin.Wang@morganstanley.com +852 2239-1118

positive on China’s competitiveness in intelligent robots. Andy Huang

Research Associate

Key Takeaways Huang.Andy@morganstanley.com +852 3963-4023

Morgan Stanley & Co. LLC

Considering the importance of physical AI and given the FCC's prior actions with William Tackett, CFA

drones, we see a risk that further restrictions could be introduced. Research Associate

William.Tackett@morganstanley.com +1 212 761-6028

We expect limited near-term impact on Chinese robotics, but the long-term

robotics roadmap, landscape and ecosystem could be affected.

We are positive on the competitiveness of China robots. Humanoid deployment

started early in China; we are optimistic on its potential to capture global

demand.

China Industrials

On stocks, near-term catalysts are likely to support sector performance, including Asia Pacific

Industry View In-Line

Unitree IPO (subscription starts Aug 10), the WRC and Humanoid Robot Games.

Among our coverage, we continue to prefer LeaderDrive, Hengli Hydraulic and

Shuanghuan.