May 24th, 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 create a specific fund of 10 billion yuan (USD 1.42 billion) to foster the growth and development of the sector.
According to him draft of the government, Metaverse companies that decide to move their headquarters to Zhengzhou will have the opportunity to receive an initial capital investment of up to 200 million yuan ($28.34 million). Businesses will also be eligible for other benefits, such as rental subsidies.
Any company dedicated to the development of metaverse use cases in the city -regardless of the location of its headquarters- will have the opportunity to receive up to 5 million yuan (USD 710,000) for each project that the municipal government certifies as viable.
At the moment, the specific date of the allocation of funds has not been revealed. In addition to unveiling funding policies, the Zhengzhou municipal government has also outlined its long-term vision for the development of the metaverse in the city. It forecasts the metaverse-related industries in Zhengzhou to reach annual revenues of more than 200 billion yuan ($28.34 billion) by the end of 2025.
These policies apply to local businesses operating in two distinct arenas: 1) research efforts 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 industriessuch as education, entertainment and commerce.
In addition, the government will collaborate with other government agencies and investment firms to secure another 50 billion yuan ($7.08 billion) in funding to support various metaverse-related development projects.. In addition, the city intends to offer cash rewards to metaverse companies when they list on China’s major stock exchanges.
The plan includes blockchain – a crucial technology in the metaverse industry – along with state-of-the-art computer rendering, human-computer interfaces and artificial intelligence. In addition, it intends to create a market for digital assets with technology of non-fungible tokens.
Zhengzhou has joined a plethora of Chinese cities and provinces promising to become leaders in the country’s metaverse development. The southeastern metropolis of Shanghai is actively pursuing its metaverse aspirations and predicts that its metaverse industry will reach an annual revenue of 350 billion yuan ($49.6 billion) by 2025.
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