Chinese authorities criticized the Donald Trump administration’s restrictions on foreign-made humanoid robots, saying the move heavily affects relations between the two countries. According to a CNBC report citing a statement by China’s Ministry of Commerce on Thursday, Beijing said the Federal Communications Commission’s (FCC) ban on foreign humanoid robots “severely damages” trade relations and stability between the two countries. The ministry also threatened retaliatory actions against the U.S. if the decision is not withdrawn. If Beijing imposes countermeasures, it could restrict the movement of rare earth for American companies and restrict access to the Chinese market for companies like Tesla Inc. and NVIDIA Corp, according to Counterpoint Research’s Marc Einstein. Tesla CEO Elon Musk expressed doubts about the FCC’s move on X, responding to a user who outlined China’s role in manufacturing technologies, saying, “China makes half the goods of Earth.” Any restrictions on rare earth materials could impact Tesla’s humanoid robot goals, as the company had earlier said production of its Optimus robot had entered a new phase, with Tesla transitioning its Fremont, California, facility to build the robot. Tesla’s Model Y SUV emerged as the best-selling model across drivetrains in China during both June and March this year, selling more than 38,000 and 39,000 units, respectively.