Shanghai wants to stimulate economic recovery in China by promoting metaverse services and goods, ‘smart’ terminal technology, and low-carbon power initiatives.
The Shanghai authority plans to introduce an industrial capital comprising assets worth around 10B yuan ($1.5 billion). The fund will enhance the metaverse growth (according to reports from South China Morning Post).
The Head of SMCEIT (Shanghai Economy & Information Technology Committee) stated that the financing would support the creation of ten leading firms and 100 small-sized companies that will focus on benchmarking services and products.
Metaverse Industry Growth in Shanghai
Shanghai plans a ten-billion-yuan fund to back the metaverse sector, building two metaverse industries in Pudong New Area and Xuhui District. Shanghai will host ten of the most substantial metaverse enterprises globally.
Moreover, it plans over 50 associated applications in the educational, commercial, collaborative office, cultural, and ‘smart’ manufacturing sectors. These developments would see the metaverse business accumulating 350B yuan come 2025.
Shanghai’s Two Sessions of this year had metaverse as the primary topic of discussion. That made Shanghai the initial municipality within the country to include innovation in the long-term plans. Also, municipal officials said Shanghai revealed development strategies to accelerate post-pandemic economic growth.
Metaverse Can Promote Many Industries
Wu showed that the sectors (mentioned above) have a massive market value and could be worth $224B (combined) by 2025. He added that metaverse investments would enhance the upgrading and transformation of most companies in the ‘real’ economy.
Some terminal technology products include ‘smart’ automobiles, robots, ‘smart’ home products, and virtual reality headsets. The SMCEIT plans to build two companies using smart terminals to boost senior care, transportation, and healthcare.
Also, Shanghai proposes to nurture ten industry titans, 1,000 specialized enterprises, top-notch energy technology, hydrogen energy development, and lower-carbon metallurgy in low-carbon industrial regions. Beware that the SMCEIT initially had the metaverse among its four investigation frontiers in December 2021.
Ready to Welcome Metaverse, But Not Cryptocurrency?
Regional giants such as Tencent and Alibaba have pioneered metaverse projects in China, but the national author remained reproachful and more critical. The CBIRC (China Banking & Insurance Regulatory Commission) warned about the metaverse usage to support illegal fundraisings early this year.
Moreover, the latest crypto slump prompted the state-operated Economic Daily to caution readers against cryptocurrencies. It also warned investors about Bitcoin’s possibility of slumping to zero.
Disclaimer: NFTs and Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Business Voices content) and the views expressed in these types of posts do not reflect the views of this website. Please read our full disclaimer here.