The city of Shanghai aims to lead China’s economic recovery by backing development in metaverse products and services, low-carbon energy projects and smart terminal technology.
The South China Morning Post reported that the Shanghai government planned to establish an industry fund of 10 billion yuan in assets, or nearly $1.5 billion, dedicated to metaverse development.
This financing will go toward creating 10 “leading” companies and 100 small-sized firms that will specialize in “benchmarking products and services,” said Wu Jincheng, head of Shanghai’s Economy and Information Technology Committee, at a press conference on July 8.
Wu added that investment in the metaverse “will drive the transformation and upgrading of various industries in the real economy” and that there is “huge market value” in the three aforementioned sectors which are estimated to be worth a combined $224 billion by 2025.
Smart terminal technology refers to virtual reality headsets, smart home gadgets, robots and smart vehicles. Shanghai’s Economy and Information Technology Committee plans to develop two companies that will leverage smart terminals to improve healthcare, elderly care and transportation.
Additionally, Shanghai intends to “nurture” 10 industry leaders and 1,000 specialized companies that will build low-carbon industrial fields for hydrogen energy development, high-end energy equipment and low-carbon metallurgy.
In December 2021, the Shanghai Municipal Commission of Economy and Information Technology first mentioned the metaverse as one of its four “frontiers for exploration,” as part of the department’s five-year development plan in accordance with that of the central government’s.