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Lawmakers Seek Scrutiny Of China Ownership In iRobot Bankruptcy

WASHINGTON, 8 January 2026 — A bipartisan pair of U.S. lawmakers has called for enhanced federal review of the bankruptcy-related transfer of iRobot Corporation, the maker of Roomba robotic vacuums, to a Chinese robotics firm, raising national security and data privacy concerns over the foreign acquisition of a U.S. technology asset.

The lawmakers, Representative Ritchie Torres (D-NY) and Representative Zach Nunn (R-IA), wrote to Treasury Secretary Scott Bessent, urging the administration to subject the transaction to a full Committee on Foreign Investment in the United States (CFIUS) review. They argue that the deal, which emerged from iRobot’s Chapter 11 bankruptcy process and would place control with Shenzhen Picea Robotics Co. Ltd. and its affiliates, raises substantial national security and data privacy concerns that require immediate government scrutiny.

From Bankruptcy to Chinese Control

iRobot, the U.S. pioneer in consumer robotics founded in 1990 and formerly best known for its Roomba line, filed for Chapter 11 bankruptcy protection in December 2025 after years of declining profits, supply-chain pressures and competition from lower-cost rivals. As part of its restructuring plan, the company agreed to a control transfer to its primary Chinese supplier and debt holder following debt acquisition and conversion into equity by Shenzhen Picea’s subsidiary.

Shenzhen Picea Robotics, a major original design manufacturer headquartered in Shenzhen, Guangdong, China, specialises in consumer robots and has been iRobot’s key manufacturing partner. The firm’s expanded ownership through the bankruptcy transaction means that iRobot’s operations, technology and perhaps sensitive consumer-connected data could come under operational control with Chinese-linked entities.

National Security And Data Privacy Concerns

In their letter to the Treasury, Torres and Nunn highlighted that such a technology transfer, particularly one involving IoT-connected consumer devices, could create privacy vulnerabilities and expose sensitive user datasets to foreign access if not properly assessed. They called on CFIUS, a panel of federal agencies authorised to review foreign investments for national security implications, to act given the potential “substantial national security and data privacy concerns” stemming from the ownership shift.

CFIUS, typically engaged for transactions involving critical infrastructure, dual-use technologies or strategic sectors such as semiconductors and AI, has broad authority to investigate and, if necessary, block or impose mitigation on deals perceived to threaten U.S. competitiveness or security. The lawmakers’ request suggests that they are positioning the iRobot situation within that broader risk framework.

Broader Policy And Technological Context

The development comes amid intensified U.S. attention on foreign ownership stakes in American technology firms, especially when those stakes involve countries seen as strategic competitors. Members of Congress have previously raised scrutiny over technology transfers, critical infrastructure investments and supply chain vulnerabilities, particularly where data privacy, IP protection and national security intersect.

The lawmakers’ call may signal a broader push in Washington to tighten oversight over overseas acquisitions of U.S. tech companies emerging from bankruptcy, even when such deals are framed as commercial restructurings rather than outright strategic takeovers.

Whether the Treasury or CFIUS will take action remains to be seen, but the letter underscores growing legislative concern that foreign acquisition paths, including through bankruptcy processes, need clearer, more robust review mechanisms to safeguard U.S. competitive and security interests.

Author

  • Bernard is a social activist dedicated to championing community empowerment, equality, and social justice. With a strong voice on issues affecting grassroots communities, he brings insightful perspectives shaped by on-the-ground advocacy and public engagement. As a columnist for The Ledger Asia, Bernard writes thought-provoking pieces that challenge norms, highlight untold stories, and inspire conversations aimed at building a more inclusive and equitable society.

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