Zhengzhou, the capital of China’s Henan Province, has introduced a series of legislative proposals designed to support local metaverse businesses and seek to foster industry growth. These initiatives, announced on May 24, 2023, involve the creation of a special fund worth $1.42 billion (10 billion yuan) by the city government.
The proposed policies apply to two specific areas of focus for local businesses. Firstly, they aim to support research activities related to metaverse technologies, including virtual reality, augmented reality, and brain-computer interfaces. Secondly, the proposals seek to encourage the application of metaverse technology in traditional sectors such as education, entertainment, and business. It also aims to establish a market for digital assets utilizing non-fungible token (NFT) technology.
According to the draft legislation, metaverse businesses that choose to relocate their headquarters to Zhengzhou will be eligible for startup capital investments of up to $28.34 million (200 million yuan). Additionally, these businesses will qualify for various incentives, including rent subsidies.
Regardless of the location of their headquarters, any business involved in developing metaverse use cases within Zhengzhou will be able to receive up to $710,000 (5 million yuan) for each approved viable initiative from the local government. Furthermore, the city plans to offer financial rewards to metaverse businesses once they are listed on major stock exchanges in China.
While there is no specific date announced for the allocation of the fund, the Zhengzhou local government has revealed the financial guidelines and long-term objectives to foster metaverse growth within the city. By the end of 2025, it expects annual revenues from Zhengzhou’s metaverse-related industries to exceed $28.34 billion (200 billion yuan).
The Zhengzhou local government also plans to collaborate with other governmental organizations and investment companies to secure an additional $7.08 billion (50 billion yuan) in funding for various metaverse-related development projects.
Zhengzhou is not alone in its commitment to drive China’s metaverse development. Several other Chinese cities and provinces are actively pursuing metaverse ambitions. For example, Nanjing unveiled its metaverse strategy in February 2023, aiming to cultivate an industry that generates annual revenues exceeding 135 billion yuan ($19.13 billion) by the end of 2025. Recently, the China Metaverse Technology and Application Innovation Platform was launched in Nanjing to facilitate and promote research and development in the metaverse sector across the country.
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