The economic foundation shapes the superstructure

Originally published on Substack.

The gap between China and the United States in embodied intelligence stems fundamentally from differences in markets and capital structures—differences that shape the very intentions of their entrepreneurs.

In the United States, founders are generally driven by long-term vision and foundational innovation. They attract venture capital that shares in the risk—when they succeed, they create a new paradigm; when they fail, they enhance the culture of exploration and attract followers. This kind of innovation ecosystem creates a virtuous cycle.

By contrast, Chinese entrepreneurs tend to be more pragmatic and execution-oriented. Under the combined pressure of capital expectations and intense market competition, their focus often revolves around rapid scaling and solving immediate pain points. Supported by the country’s vast manufacturing base and rich data resources, Chinese companies prioritize efficiency and application-layer innovation, seeking to “overtake on the curve” and stand out in fiercely competitive environments.

However, as China’s economic foundation strengthens—through industrial upgrading and capital accumulation—the superstructure (policy direction and entrepreneurial mindset) is evolving from pure pragmatism toward a blend of long-term vision and rapid execution. Both government and venture capital now recognize the risks of short-term aggressiveness and are steering toward strategies that balance sustained investment and real-world implementation.

This shift not only reduces wasteful competition and resource inefficiency but also, through coordinated policy and capital guidance, is gradually closing the gap with the U.S. in the field of Embodied AI—the integration of artificial intelligence into physical interaction systems such as robotics and autonomous driving.