Shanghai wants to create more than 100 companies in a plan that focuses on virtual reality and increased connectivity.
Shanghai, the financial and commercial hub of China, plans to ramp up support for the metaverse and other tech-related industries as the country's most populous urban area answers Beijing's call to help lead the nation's post-pandemic economic recovery. A policy paper released by the Shanghai city government on July 8 outlined its strategy to cultivate a metaverse industry worth 350 billion yuan ($52 billion) by the end of 2025.
The Shanghai government has established an industry fund, with around 10 billion yuan in assets, dedicated to metaverse development. That financing will help the Chinese metropolis foster 10 leading companies and 100 small-sized firms, which could launch at least 100 "benchmarking products and services" by 2025.
"Industries such as the metaverse and smart terminals are expected to constantly spur new business schemes and models," said Wu Jincheng, head of Shanghai's Economy and Information Technology Committee, at the press conference. "[These would] give rise to 'killer' applications and popular products, releasing huge market value."
China's most populated city drafted a metaverse development plan in December, in which it set out a five-year goal to increase research of underlying technologies including sensors and the use of blockchain. Data compiled by Statista indicates that interest in non-fungible tokens (NFTs) and the metaverse is greater in China, Singapore and Hong Kong than in Europe or the U.S.