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.

The capital of China’s Henan Province, Zhengzhou, on May 24, announced a series of policy proposals designed to provide support for metaverse companies operating in the region. As part of these initiatives, the municipal government intends to establish a dedicated fund worth $1.42 billion (10 billion yuan) to foster growth and development within the industry.

As 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 $28.34 million (200 million yuan). Additionally, these companies will qualify for various other benefits, including rent subsidies.

Any company engaged in the development of metaverse use cases within the city, regardless of their headquarters location, will have the opportunity to receive up to $710,000 (5 million yuan) 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 the metaverse-related industries in Zhengzhou will achieve an annual revenue surpassing $28.34 billion (200 billion yuan) by the conclusion of 2025.

These policies are applicable to local enterprises operating in two distinct areas. Firstly, research endeavors focused on metaverse-related technologies such as virtual reality, augmented reality and brain-computer interfaces. Secondly, 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 $7.08 billion (50 billion yuan) 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.

The plan includes blockchain as a crucial technology in the metaverse industry, alongside next-gen computer rendering, human-computer interfaces and artificial intelligence (AI). Additionally, it aims to create a digital asset market using non-fungible token (NFT) 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, Shanghai, is actively pursuing its metaverse aspirations, predicting its metaverse industry will reach annual revenue of $49.6 billion (350 billion yuan) by 2025.

Source: https://cointelegraph.com/news/chinese-city-releases-policy-draft-for-metaverse-industry-development