Shanghai to ramp up support for metaverse development, low-carbon projects, smart gadgets to help China’s economic recovery

China’s financial and commercial hub plans to establish an industry fund, with around US$1.5 billion in assets, dedicated to metaverse development

That support will help Shanghai foster 10 leading companies and 100 small-sized firms, which could launch 100 new metaverse products and services by 2025

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Shanghai plans to foster 10 leading companies and 100 small-sized firms, which could launch at least 100 metaverse products and services by 2025. Photo and illustration: Shutterstock

Published: 6:29pm, 10 Jul 2022Updated: 9:01pm, 10 Jul 2022

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.

This new initiative, which includes backing the development of low-carbon projects and smart terminal industries, is expected to “build advantages for future development” and become a “starting point for accelerating economic recovery”, according to a press conference held by Shanghai government officials on Friday. They said those three sectors combined are expected to be worth 1.5 trillion yuan (US$224 billion) 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.”

The Shanghai government also aimed to establish 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.

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Tech companies in China chase metaverse opportunities in immersive virtual online world

The metaverse refers to an immersive virtual world, where digital representations of people can interact with each other like they do in real life. Virtual reality (VR) and augmented reality (AR) technologies are regarded as fundamental to the development of the metaverse, which is also considered as the next iteration of the internet.

“Metaverse will drive the transformation and upgrading of various industries in the real economy,” Wu said.