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This paper analyzes the emergence of new technology-based sectors in China based on Chinese patent data. We apply the research framework based on product-space methodology to Chinese patent data and find that China displays similar characteristics to other developed countries. The technology structure based on local accumulated capabilities at the province level plays the biggest role in the emergence of new technology-based sectors. Furthermore, we find that the accumulated technological capabilities in adjacent provinces have positive spillover effects to this emergence and the accumulated technological capabilities in non-adjacent provinces have uncertain effects to this emergence; the spread of capabilities is constrained by geographical distance.