Published by ChinaMNC · Gaer

Jiangsu Signals Support for Physical AI and World Models: What Foreign Founders Need to Know

Jiangsu province hosted a major AI conference, announcing initiatives that create opportunities for foreign founders in physical AI and world models. Here’s how to register and run a company in China to seize them.

Practical Takeaways for Foreign Founders

On October 20, Jiangsu province hosted the 2026 Physical AI and World Models Conference in Nanjing under the theme “Modeling the Physical World, Enabling a Better Future.” The event showcased Jiangsu’s commitment to advancing AI that interacts with the real world. For international founders, this signals growing support for companies in this space. But to participate, you need a China entity. This article outlines the key steps to register and operate a company in China, using only facts from the official announcement.

Why Jiangsu’s Focus on Physical AI Matters for Your Registration

Governor Liu Xiaotao stated that Jiangsu will expand application scenarios, attract innovative talent, strengthen computing infrastructure, optimize the industrial ecosystem, and create a favorable environment. This means more resources and opportunities for AI companies. For foreign founders, choosing Jiangsu as your registration location could provide access to these benefits. The province’s rich application scenarios, as noted by Xia Bing, deputy director of the National Data Administration, serve as a “training ground” for physical AI and world models. By registering in Jiangsu, you position your company to leverage these scenarios and potentially benefit from local support.

Choosing Your Entity: WFOE vs. Joint Venture

Foreign founders typically choose between a wholly foreign-owned enterprise (WFOE) and a joint venture (JV) with a Chinese partner. The conference highlighted the formation of the “Physical AI and World Models” Industry Alliance and the establishment of the National Beacon Committee’s Embodied Intelligence Working Group. These collaborative platforms suggest that partnering with local entities can be advantageous. However, a WFOE offers full control. Your choice depends on your business strategy and the level of local collaboration you seek.

Registration Steps: What You Need to Know

Registering a company in China involves several key steps. While the source article does not detail registration procedures, it does mention the release of a “High-Quality Dataset Action Plan” and typical achievements and scenarios for physical AI and world models. These initiatives indicate a structured approach to industry development. For your registration, you will need to:

• Choose a company name and verify its availability.
• Determine your registered capital (no minimum for most industries, but check specific requirements).
• Secure a registered address (virtual offices may be acceptable in some zones).
• Prepare articles of association and other incorporation documents.
• Obtain necessary approvals (e.g., for foreign investment).

These steps are standard for foreign investors. The conference’s focus on data and standards, such as the national standard pre-research for “Artificial Intelligence World Models,” suggests that compliance with data and technical standards will be important. Ensure your business scope aligns with these developments.

Capital and Investment: New Fund Signals Opportunity

A strategic cooperation agreement for the “Physical AI and World Models Investment Fund” was signed at the conference. This fund could provide financing opportunities for startups in this field. For foreign founders, this means potential access to capital if your company is registered in China and operates in this space. When registering, consider your capital needs and how you might tap into such funds. The presence of investment institutions at the conference underscores the growing interest in this sector.

Licenses and Compliance: Data and Standards

The conference announced the establishment of the National Data Annotation Pilot City Alliance for Jiangsu and Anhui (Yangtze River Delta Data Annotation Joint Innovation Center) and the launch of the “Physical AI and World Models High-Quality Dataset Action Plan.” This highlights the importance of data-related compliance. If your company handles data, you may need to adhere to data labeling and security regulations. Additionally, the national standard pre-research for world models indicates upcoming technical standards. Stay informed to ensure your products and services comply.

Tax and Ongoing Operations

Once registered, your company must manage tax obligations. China offers various tax incentives for high-tech enterprises, but eligibility depends on factors like location and industry. The conference’s emphasis on optimizing the industrial ecosystem suggests that Jiangsu may offer local incentives. Consult a tax advisor to understand your obligations and potential benefits. Also, ensure you comply with annual reporting and audit requirements.

Leveraging Talent and Innovation

Governor Liu expressed a desire to collaborate with global top talent, quality teams, and innovative enterprises. This openness indicates that foreign founders are welcome. By registering a company in China, you can access local talent and innovation resources. The conference also featured thematic sharing by academicians and young entrepreneurs, highlighting the vibrant ecosystem. Consider how your company can integrate into this network.

Conclusion: Seize the Momentum

Jiangsu’s push into physical AI and world models creates a favorable environment for foreign founders. By understanding the registration process, capital opportunities, and compliance requirements, you can establish a strong presence in China. Remember, while the source provides insights into the sector’s direction, it does not cover every registration detail. Seek professional advice tailored to your situation.

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.