France and Asia: A Key Partnership for Industrial AI

France at the Crossroads of Industrial AI and Asia

As physical artificial intelligence (AI) gains momentum, France finds itself at a crucial turning point in its reindustrialization. To remain competitive, it must strengthen its ties with powerful Asian ecosystems. The integration of AI into physical systems, whether in manufacturing, healthcare, or logistics, is redefining the rules of the global industrial game. With its history of technical excellence, France must now look to Asia to accelerate this transition.

French successes in fields such as aerospace, energy, and industrial design demonstrate what can be achieved with an ambitious national vision. The Concorde, a symbol of international cooperation and technological prowess, embodies this spirit. Today, France must draw inspiration from these achievements to position itself at the forefront of physical AI.

Physical AI: A New Industrial Frontier

The industrial future hinges on the integration of intelligence into physical systems. AI is no longer limited to software; it is embodied in machines and production environments. This transformation, often referred to as "physical AI" or "industrial AI," is already underway, profoundly altering sectors like healthcare and mobility.

France has grand ambitions in this area. The France 2030 plan and recent investment commitments reflect a clear desire to strengthen the country's industrial policy and technological sovereignty. Historic companies such as Schneider Electric, Dassault, and Valeo, along with new robotics firms like Wandercraft and Enchanted Tools, illustrate the solid foundations of French innovation.

However, ambition must be supported by a structural strategy. The share of manufacturing in the French economy has decreased over the decades, making reindustrialization both crucial and demanding. Meanwhile, Asia, particularly China, has developed impressively dense industrial ecosystems where robotics, advanced materials, and production engineering coexist closely. These regions operate as open-air laboratories, where research and production continuously interact.

Navigating Global Ecosystems While Preserving Sovereignty

For European companies, accessing these Asian ecosystems is complex. Regulatory divergences, geopolitical tensions, and concerns regarding intellectual property influence strategic decisions. Thus, some of the most advanced capabilities in industrial AI are developing in environments perceived as distant.

The question is no longer whether France should collaborate internationally, but how. The challenge is to access global innovation networks while retaining control over intellectual property and governance. Trusted interfaces play a crucial role here. They provide a familiar legal framework, enabling the transformation of applied research into concrete solutions while repatriating the value created at the European level.

Hong Kong: A Strategic Hub for Innovation

Hong Kong is establishing itself as a bridge between European innovation and Asian industrial capabilities. The city combines world-class universities, a robust legal framework, and intellectual property protection that meets international standards. It offers direct access to advanced production capabilities in southern China.

For European companies, Hong Kong represents an ideal environment to collaborate with Asian ecosystems while adhering to the standards of their home markets. French companies like Schneider Electric and Veolia have already signed agreements with the Hong Kong University of Science and Technology to explore new approaches in smart industry.

By the end of 2025, a consortium including Schneider Electric, Veolia, Bouygues-Dragages, and Saint-Gobain signed a partnership with the Hong Kong University of Science and Technology (HKUST). This partnership aims to explore new approaches in smart industry and energy technologies within a "living lab" on the university campus.

Additionally, Prophesee, a French pioneer in neuromorphic vision sensors for robotics, has opened an innovation center in Hong Kong. This allows them to collaborate more closely with regional players.

In terms of research, the National Research Agency (ANR) and the Research Grants Council of Hong Kong are jointly funding projects in areas such as robotics, microelectronics, and advanced materials. Furthermore, La French Tech Hong Kong–Shenzhen provides French start-ups with a platform to access regional industrial ecosystems while allowing them to retain their strategic R&D activities and intellectual property within a familiar governance framework.

Cooperation and Sovereignty: A Balance to Strike

Technological sovereignty comes through cooperation. In physical AI, the distinction is no longer between European and Asian innovation, but between ecosystems capable of connecting and those that remain isolated. France, with its cutting-edge research and talented entrepreneurs, must leverage international collaborations to strengthen its industrial ambition.

The Concorde once symbolized what French engineering and international cooperation could achieve. Today, the next great advancement could emerge from a similar dynamic in the industry augmented by artificial intelligence. Partnerships between French innovators and Asian players, based on mutual respect and knowledge sharing, could enhance French sovereignty while enriching its innovations.