Chinese city releases policy draft for metaverse industry development

The policies include a series of cash benefits to attract metaverse-related companies to set up shop in the city.

On May 24, the Chinese city of Zhengzhou announced a series of policy proposals to support metaverse companies operating in the region. As part of the initiatives, the municipal government will establish a dedicated fund worth 10 billion yuan ($1.42 billion) to foster growth and development in the industry.

Per the government draft, metaverse companies that choose to relocate their headquarters to Zhengzhou will have the opportunity to receive a startup capital investment of up to 200 million yuan ($28.34 million). The companies will also qualify for other benefits, including rent subsidies.

Any company engaged in the development of metaverse use cases in the city — regardless of its headquarters location — will have the opportunity to receive up to 5 million yuan ($710,000) for each project certified as viable by the municipal government.

The specific date of the fund allocation has not been disclosed as of now. In addition to unveiling the funding policies, the municipal government of Zhengzhou has also outlined its long-term vision for the metaverse development in the city. It foresees that metaverse-related industries in Zhengzhou will achieve an annual revenue surpassing 200 billion yuan ($28.34 billion) by the end of 2025.

These policies apply to local enterprises operating in two distinct areas: 1) research endeavors focused on metaverse-related technologies, such as virtual reality, augmented reality and brain-computer interfaces; and 2) the utilization of metaverse technologies in real-world industries, such as education, entertainment and commerce.

Additionally, the government will collaborate with other governmental agencies and investment firms to secure an additional 50 billion yuan ($7.08 billion) in funding to support various metaverse-related development projects. Moreover, the city intends to offer cash rewards to metaverse companies upon their listing on China’s primary stock exchanges.

Related: Chinese state media removes video on crypto after Binance CEO calls it ‘big deal’

The plan includes blockchain — a crucial technology in the metaverse industry — alongside next-gen computer rendering, human-computer interfaces and artificial intelligence. Additionally, it aims to create a digital asset market using nonfungible token technology.

Zhengzhou has joined a plethora of Chinese cities and provinces vowing to become leaders in the country’s metaverse development. The south-eastern metropolis of Shanghai is actively pursuing its metaverse aspirations, predicting its metaverse industry will reach annual revenue of 350 billion yuan ($49.6 billion) by 2025.

Magazine: China’s wave of ChatGPT rivals, Alibaba goes multichain: Asia Express

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