Scientific Journal SPATIAL ECONOMICS - China’s Development of Technological Sovereignty in the Field of ‘Physical AI’: The Case of Industrial Robotics

In the section	Articles
Title of the article	China’s Development of Technological Sovereignty in the Field of ‘Physical AI’: The Case of Industrial Robotics
Pages	73-103
Author 1	Olga Alexandrovna Klochko Candidate of Sciences (Economics), Associate Professor of the Department of World Economy National Research University Higher School of Economics 20 Myasnitskaya St., Moscow 101000, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0003-0355-5506
Author 2	Mariia Petrovna Kuznetsova Research intern of the Faculty of World Economy and International Affairs National Research University Higher School of Economics 20 Myasnitskaya St., Moscow 101000, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID:
Abstract	The article assesses China’s technological sovereignty in high-tech industries that form the ecosystem of physical artificial intelligence and its readiness to develop intelligent robotics. The aim of the study is to identify changes in China’s position in the global value chains of these industries through a comprehensive analysis of foreign value added used in production, including its sectoral and regional structure. The methodological framework comprises an analysis of the Backward Participation Index based on the OECD TiVA database for 2008–2022, a comparison of foreign trade indicators from Trade Map for 2008–2025, and an analysis of China’s position in the global industrial robotics market. The study covers electronics, electrical equipment, machinery, telecommunications, software, information services, and scientific and technical activities. It finds that China has significantly reduced its dependence on foreign value added across all examined industries by diversifying supplies and strengthening its position in the production of key components. The number of product categories in which China is a net importer has decreased substantially. Advanced semiconductors and semiconductor manufacturing equipment remain the most vulnerable links. In industrial robotics, China has become the world’s largest market and is expanding domestic production; in 2024, Chinese companies accounted for more than half of domestic sales. In the humanoid robotics segment, China has established a production ecosystem supported by government policies and domestic demand. The findings can be applied to assess technological resilience and the prospects for developing physical AI amid global technological decoupling. The study concludes that China is advancing toward technological sovereignty while remaining dependent on certain advanced technologies
Code	339.5+004.8
JEL	F02, F10, L63
DOI	https://dx.doi.org/10.14530/se.2026.3.073-103
Keywords	global value chains, humanoid robots, import substitution, artificial intelligence, industrial robotics, technological dependence, technological sovereignty, physical artificial intelligence, China
Download	SE.2026.3.073-103.Klochko.pdf
For citation	Klochko O.A., Kuznetsova M.P. China’s Development of Technological Sove-reignty in the Field of ‘Physical AI’: The Case of Industrial Robotics. Prostranstvennaya Ekonomika = Spatial Economics, 2026, vol. 22, no. 3, pp. 73–103. https://dx.doi.org/10.14530/se.2026.3.073-103 (In Russian)
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Financing	This work is supported by the Russian Science Foundation (project 25-28-00850), https://rscf.ru/project/25-28-00850
Submitted	27.08.2026
Approved after reviewing	09.09.2026
Accepted for publication	10.09.2026
Available online	30.09.2026