The policies introduced by the city offer financial incentives to encourage companies involved in the metaverse industry to establish their operations in the area. These incentives aim to attract metaverse-related businesses and provide them with monetary benefits to support their growth and development.
On May 24, the Chinese city of Zhengzhou revealed a set of plans to assist metaverse companies operating in the area. As a part of these initiatives, the local government will create a special fund valued at 10 billion yuan ($1.42 billion) to promote the growth and advancement of the metaverse industry. This fund aims to provide financial support and resources to nurture the development of metaverse-related businesses in the region.
According to the proposed government plan, metaverse companies that decide to move their main offices to Zhengzhou will have the chance to receive a startup investment capital of up to 200 million yuan ($28.34 million). Additionally, these companies will be eligible for other advantages, such as subsidies to help with their rental expenses. The aim of these incentives is to attract metaverse businesses to set up their base in Zhengzhou and provide them with financial support to kickstart their operations.
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Any company involved in creating metaverse applications within the city, regardless of where their main office is located, will have the chance to receive funding of up to 5 million yuan ($710,000) for each project that is deemed feasible by the local government. This financial support will be provided to help these companies bring their metaverse ideas to life and contribute to the growth of the metaverse industry in the area.
At present, the exact date for the allocation of funds has not been disclosed. Along with introducing the funding policies, the local government of Zhengzhou has shared its long-term vision for the metaverse industry’s growth within the city. The government envisions that by the end of 2025, metaverse-related industries in Zhengzhou will generate annual revenue exceeding 200 billion yuan ($28.34 billion). This projection demonstrates the city’s ambitious goals for the development and economic impact of the metaverse sector, aiming for substantial financial gains and prosperity in the coming years.
These policies are for local businesses working in two different areas:
- Research: Companies involved in studying and developing technologies related to the metaverse, like virtual reality, augmented reality, and brain-computer interfaces.
- Real-world Applications: Companies using metaverse technologies in practical industries such as education, entertainment, and commerce.
In simpler terms, the policies support local businesses that are either exploring metaverse technologies or applying them to fields like education, entertainment, and commerce.
Furthermore, the government plans to work together with other government agencies and investment firms to obtain an extra 50 billion yuan ($7.08 billion) in funding. This funding will be used to support different projects related to the development of the metaverse. Additionally, the city aims to provide financial incentives to metaverse companies when they are listed on China’s main stock exchanges. In simpler terms, the government will seek additional funding to support metaverse-related projects and offer cash rewards to metaverse companies when they go public on China’s primary stock exchanges.
The plan involves important technologies for the metaverse industry, such as blockchain, which plays a crucial role. It also focuses on next-generation computer rendering, human-computer interfaces, and artificial intelligence. Additionally, the plan aims to establish a market for digital assets using a technology called non-fungible tokens (NFTs). In simpler terms, the plan includes using key technologies like blockchain, advanced computer graphics, interfaces between humans and computers, and artificial intelligence. It also aims to create a market for unique digital items using a technology called non-fungible tokens.
Zhengzhou has joined many other cities and provinces in China, all aiming to take the lead in the country’s metaverse development. The city of Shanghai, located in the southeast, is actively pursuing its metaverse ambitions. It predicts that its metaverse industry will generate annual revenue of 350 billion yuan ($49.6 billion) by the year 2025. In simpler terms, Zhengzhou is joining other Chinese cities and provinces in striving to become prominent in the development of the metaverse. Shanghai, in particular, has set high goals for its metaverse industry, aiming for substantial annual earnings by 2025.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.