Chinese city publishes proposed metaverse industry development strategy
According to a government announcement, metaverse businesses who decide to move their headquarters to Zhengzhou would be eligible to receive initial capital investments of up to 200 million yuan. Find out more about it below.
Zhengzhou, a Chinese city, unveiled a number of legislative suggestions on May 24 to assist regional metaverse businesses. A special fund of 10 billion yuan ($1.42 billion) will be established by the city government as part of steps to promote industrial growth and development. According to the government's statement, metaverse businesses will get the chance to earn starting capital investments of up to 200 million yuan ($28.34 million) if they decide to move their headquarters to Zhengzhou.
The businesses will also be eligible for additional incentives, such as rent subsidies. No matter where its headquarters are located, any business developing metaverse use cases in the city will be eligible to earn up to 5 million yuan ($710,000) for any initiative that the local government deems feasible.
Chinese city announces suggested plans for the growth of the Metaverse sector
On May 24, the Chinese city of Zhengzhou proposed a variety of legislative proposals to support local metaverse enterprises. The municipal administration will create a special fund worth 10 billion yuan ($1.42 billion) as part of initiatives to support industry development and growth.
The government has announced that metaverse companies who choose to relocate their headquarters to Zhengzhou would have the opportunity to receive initial capital investments of up to 200 million yuan ($28.34 million). The companies will also be qualified for extra rewards, such as rent subsidies.
Any company establishing metaverse use cases in the city will be qualified to receive up to 5 million yuan ($710,000) for any project that the local government considers practical, regardless of where its headquarters are.
As of right moment, no exact date for the fund allocation has been made public. The local administration of Zhengzhou has revealed the financial guidelines as well as its long-term goals for the growth of the metaverse in the city. By the end of 2025, it predicts that Zhengzhou's metaverse-related sectors would generate yearly sales of more than 200 billion yuan ($28.34 billion).
These regulations apply to local businesses engaged in two distinct activities: 1) metaverse-related technology research projects involving virtual reality, augmented reality, and brain-computer interfaces; and 2) the use of metaverse technology in conventional fields like education, entertainment, and business.
A further 50 billion yuan ($7.08 billion) in funds will be obtained by the government in conjunction with other governmental organisations and investment companies to assist other metaverse-related development initiatives. Additionally, the city plans to reward metaverse businesses financially after they list on the main stock markets in China.
Along with next-generation computer rendering, human-computer interfaces, and artificial intelligence, the strategy incorporates blockchain, a key technology in the metaverse sector. It also aspires to provide a market for digital assets utilising nonfungible token technology.
Zhengzhou has pledged to lead the nation's metaverse development, joining a large number of other Chinese cities and provinces in doing so. Shanghai, a city in China's southeast, is vigorously pursuing its metaverse ambitions and projects that by 2025 the metaverse business would generate 350 billion yuan ($49.6 billion) in yearly income.
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