Published by ChinaMNC · Chengguan

Jiangsu Signals Openings in Physical AI and World Models: What Foreign Founders Should Know

A government conference in Nanjing on physical AI and world models highlights Jiangsu's policy priorities, new industry alliances, and investment funds—key context for foreign founders planning China operations.

Jiangsu Pushes Physical AI and World Models: Practical Takeaways for Foreign Founders

On October 20, the 2026 Physical AI and World Models Conference opened in Nanjing under the theme "Modeling the Physical World, Enabling a Better Future." The event, reported by the Jiangsu provincial government, brought together provincial leaders, national data and standards bodies, industry associations, universities, investors, and companies. For foreign founders evaluating where to register or expand a company in China, the gathering offers a useful signal of which technologies and regions local authorities intend to support.

What Happened at the Conference

Governor Liu Xiaotao attended and delivered remarks. Xia Bing, deputy director of the National Data Administration, Tan Tieniu, chairman of the World Data Organization, and Dai Qionghai, chairman of the Chinese Association for Artificial Intelligence, also spoke. The presence of both provincial and national officials, alongside industry association heads, indicates coordination across policy levels on this technology theme.

Provincial Priorities Outlined

Governor Liu described physical AI and world models as an important direction for AI technology extending into the real world, upgrading toward systematic cognition, and moving into physical application scenarios. He said Jiangsu will focus on:

• Expanding scenario applications — applying the technology in real settings;
• Attracting innovative talent — drawing skilled people to the province;
• Strengthening the computing foundation — building out computing capacity;
• Optimizing the industrial ecosystem — improving the surrounding business environment;
• Creating a favorable environment — supporting research, technical work, scenario validation, and industry cultivation with what the source describes as all-round, full-chain support.

He also expressed a wish to work with top global talent, quality teams, and innovative enterprises to explore new frontiers in AI. For foreign founders, this is an explicit invitation to engage, though the source does not specify incentive amounts, tax rates, or eligibility criteria.

National Perspectives on Data and Industry

Xia Bing noted that Jiangsu's rich application scenarios provide a natural "training ground" for physical AI and world models, and encouraged the province to convert scenario advantages into data advantages, and data advantages into industrial advantages. Tan Tieniu called for using the conference to deepen exchange and cooperation and to integrate data, innovation, industry, and talent chains, turning conference outcomes into real productivity. Dai Qionghai said the conference will help connect frontier technology with real industry needs and build an innovation ecosystem integrating industry, academia, and research.

These remarks matter to foreign founders because they point to data access, industry collaboration, and commercialization as policy goals—areas that often determine whether a technology venture can scale in China.

Concrete Announcements and Signings

The conference produced several tangible developments, according to the source:

• Investment fund signing: Zhang Wenbing, standing committee member and executive vice governor, and Li Zhongjun, mayor of Nanjing, witnessed the strategic cooperation signing for a "Physical AI and World Models Investment Fund." The source does not disclose the fund's size, investors, or terms.
• Industry alliance launched: A "Physical AI and World Models" industry alliance was established, alongside a national data annotation pilot city alliance for Jiangsu and Anhui (the Yangtze River Delta Data Annotation Joint Innovation Center).
• Data action plan: Jiangsu released a "Physical AI and World Models High-Quality Dataset Action Plan," plus typical achievements and typical scenarios.
• Project signings: A batch of major projects was signed. Details were not provided in the source.
• Standards work: The national technical committee for standards established an embodied intelligence working group, and pre-research began on a national standard for "Artificial Intelligence — World Models."
• Knowledge sharing: Academicians, experts, and young entrepreneur representatives in AI gave keynote sharing sessions. Attendees also toured an exhibition before the opening.

For foreign founders, the standards and data initiatives are particularly relevant. Early involvement in industry alliances or standards discussions can help shape how technologies are evaluated and deployed, though participation pathways are not detailed in the source.

Who Attended

Also present were Secretary-General Zhao Jianjun of the provincial government; responsible officials from relevant departments and bureaus of the Ministry of Industry and Information Technology and the National Data Administration; officials from provincial departments, units, and cities; and representatives of enterprises, universities, research institutes, and investment institutions. The breadth of attendance suggests a cross-sector push rather than a purely academic event.

What This Means for Foreign Founders

Foreign founders considering company registration or operations in China can read several practical signals from this conference, while keeping in mind that the source contains no concrete incentives, timelines, or application procedures.

• Jiangsu is positioning itself as a physical AI hub. The provincial government's stated focus on scenarios, talent, computing, and industrial ecosystem suggests a supportive policy environment for related ventures.
• Data and standards are moving in parallel. The data annotation alliance, dataset action plan, and national standard pre-research indicate that data quality and interoperability will be active policy areas—relevant for any AI company handling data in China.
• Investment and industry collaboration channels are forming. The investment fund and industry alliance create potential partners, though foreign founders should verify participation rules directly with relevant authorities or advisors.
• Nanjing is the focal point. Hosting the conference reinforces the city's role, but the source does not specify city-level incentives for foreign firms.

Founders should treat these announcements as directional rather than definitive. Registration, foreign investment access, data compliance, and standards participation all involve separate regulatory processes not addressed in the source.

Next Steps

Foreign founders interested in physical AI, world models, or related data and standards work may wish to monitor Jiangsu provincial and Nanjing municipal announcements for further details on the investment fund, industry alliance membership, and dataset plan. Because the source provides no application deadlines or eligibility rules, direct inquiries to the relevant authorities or professional advisors are advisable before making commitments.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Call to action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.