Published by ChinaMNC · Mozhugongka

Jiangsu Opens 2026 Physical AI & World Models Conference: What Foreign Founders Need to Know

Jiangsu province hosted the 2026 Physical AI and World Models Conference in Nanjing on October 20, showcasing policy support, industry alliances, and investment funds. For foreign founders, this signals emerging opportunities in AI and data sectors, but requires attention to local partnerships and compliance with evolving standards.

Jiangsu Hosts 2026 Physical AI & World Models Conference

On October 20, 2026, the Jiangsu Provincial Government convened the 2026 Physical AI and World Models Conference in Nanjing under the theme “Modeling the Physical World, Empowering a Better Future.” The event underscored Jiangsu’s ambition to become a hub for physical AI—artificial intelligence that interacts with the real world—and world models, which are AI systems that simulate physical environments. For foreign founders considering setting up or expanding operations in China, such government-backed initiatives can indicate priority sectors and available support mechanisms.

Government Commitment and Strategic Vision

Governor Liu Xiaotao, who attended and delivered remarks, emphasized that physical AI and world models represent a key direction for AI technology to extend into the objective real world, upgrade systematic cognition, and land in physical scenarios. He outlined Jiangsu’s plan to support the field through five key actions:

• Expanding scenario applications: Encouraging practical use cases across industries.
• Attracting innovative talent: Drawing top professionals and teams.
• Strengthening computing infrastructure: Building robust computing power foundations.
• Optimizing the industrial ecosystem: Fostering a supportive environment for businesses.
• Creating a favorable environment: Improving overall conditions for innovation.

These measures aim to provide comprehensive, full-chain support for academic research, technical breakthroughs, scenario validation, and industry cultivation. Governor Liu also expressed a desire to collaborate with global top talent, quality teams, and innovative enterprises to explore new frontiers in AI.

For foreign founders, this signals that Jiangsu is actively seeking international expertise and investment in physical AI. However, specific incentives or guarantees are not detailed in the source, so founders should consult local authorities for precise policies.

National and International Voices

The conference featured remarks from key figures in China’s data and AI governance:

• Xia Bing, Deputy Director of the National Data Administration: Highlighted Jiangsu’s rich application scenarios as a natural “training ground” for physical AI and world models. He encouraged Jiangsu to transform scenario advantages into data advantages, and data advantages into industrial advantages, aiming to lead and demonstrate in the field’s development.
• Tan Tieniu, Chairman of the World Data Organization: Expressed hope that the conference would serve as a platform to deepen exchanges and cooperation, promote the deep integration of data chains, innovation chains, industrial chains, and talent chains, and translate conference outcomes into real productivity.
• Dai Qionghai, Chairman of the Chinese Association for Artificial Intelligence: Noted that the conference would drive cutting-edge technology to meet real industry needs, allow scientific research to take root in industrial practice, and use technological iteration to spur industrial upgrading, creating an innovation ecosystem that deeply integrates industry, academia, and research.

These statements reinforce the collaborative and application-oriented approach favored by Chinese authorities, which foreign founders can leverage by aligning their business plans with local priorities.

Key Announcements and Initiatives

The conference witnessed several concrete developments that could affect the business environment for AI and data companies:

• Strategic cooperation signing for the “Physical AI and World Models Investment Fund”: Witnessed by Zhang Wenbing, Standing Committee Member and Executive Vice Governor of Jiangsu, and Li Zhongjun, Mayor of Nanjing. This fund may provide financing opportunities for qualifying projects, though details on eligibility and scale are not provided in the source.
• Establishment of the National Data Annotation Pilot Su-Wan City Alliance (Yangtze River Delta Data Annotation Joint Innovation Center): This regional alliance could influence data labeling standards and practices, relevant for AI companies requiring high-quality datasets.
• Establishment of the “Physical AI and World Models” Industry Alliance: A platform for industry collaboration that foreign companies might join or partner with.
• Release of Jiangsu’s “Physical AI and World Models High-Quality Dataset Action Plan”: This plan likely outlines initiatives to develop and share datasets, which could benefit AI developers.
• Release of typical achievements and scenarios in physical AI and world models: Showcasing practical applications, offering insights into market demand.
• Signing of a batch of major projects: Indicates active investment and partnership opportunities.
• Establishment of the National Information Standards Committee Embodied Intelligence Working Group: This group will likely develop standards for embodied AI, affecting compliance for companies in the sector.
• Launch of pre-research for the national standard “Artificial Intelligence – World Models”: Early-stage standardization that foreign founders should monitor for future regulatory requirements.
• Thematic sharing by academicians, experts, and young entrepreneurs in AI: Networking and knowledge exchange opportunities.

These initiatives suggest a structured push to build an ecosystem around physical AI, with potential entry points for foreign firms through investment, partnerships, or standard-setting participation.

Practical Implications for Foreign Founders

For foreign entrepreneurs looking to register or operate a company in China, the conference highlights several actionable insights:

1. Sectoral Focus

Physical AI and world models are clearly prioritized by Jiangsu’s government. Founders in robotics, autonomous systems, simulation software, and AI training platforms may find a receptive environment.

2. Collaboration Opportunities

The newly formed industry alliance and investment fund could serve as gateways for foreign companies to connect with local partners, access funding, and navigate the regulatory landscape. However, formal mechanisms for foreign participation are not specified, so due diligence is essential.

3. Data and Standards

The data annotation alliance and high-quality dataset action plan indicate a focus on data resources. Foreign AI companies that rely on large datasets should stay informed about data export and labeling regulations. The launch of national standards for world models and embodied intelligence means early compliance planning is advisable.

4. Government Engagement

The presence of top provincial officials and national regulators underscores the importance of building relationships with local authorities. Foreign founders should consider engaging with Jiangsu’s commerce and industry departments to understand available support and application procedures.

5. Talent and Innovation

Jiangsu’s emphasis on attracting global talent and fostering innovation suggests that foreign founders may benefit from hiring local talent and participating in government-backed talent programs. However, visa and work permit processes remain governed by national laws.

Conclusion

The 2026 Physical AI and World Models Conference in Jiangsu signals a strategic push into cutting-edge AI domains, with tangible initiatives in investment, industry alliances, data resources, and standards. Foreign founders should view this as an indicator of emerging opportunities but must conduct thorough research and seek local expertise to navigate China’s regulatory and business environment. While the source outlines government intentions, it does not provide specific guarantees or incentives, so practical steps should be based on official guidance and professional advice.

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