Zhengzhou, China, released a series of policy proposals on May 24 to support metaverse companies operating in the region. The government will establish a 10 billion yuan ($1.42 billion) fund to promote the industry’s growth and development.
According to the government draft, metaverse enterprises that relocate their headquarters to Zhengzhou will be eligible to receive up to 200 million yuan ($28.34 million) in startup capital. The enterprises will also be eligible for additional benefits, such as rent subsidies.
Any company developing viable metaverse use cases in the city, independent of its headquarters location, will be eligible to receive up to 5 million yuan ($710,000) per possible project certified by the municipal government.
The exact date of the fund distribution has yet to be disclosed. In addition to unveiling funding policies, the Zhengzhou municipal government has defined its long-term vision for the city’s metaverse development.
By the end of 2025, the annual revenue of Zhengzhou’s metaverse-related industries is anticipated to surpass 200 billion yuan ($28.34 billion).
These policies apply to local businesses operating in two distinct areas: 1) research involving metaverse-related technologies, such as virtual reality, augmented reality, and brain-computer interfaces, and 2) metaverse technologies in real-world industries, such as education, entertainment, and commerce.
In addition, the government will work with other governmental agencies and investment firms to secure an additional 50 billion yuan ($7.08 billion) to support various metaverse-related development initiatives.
In addition, the city intends to offer monetary incentives to metaverse companies that list on China’s major stock exchanges.
The plan includes blockchain, an essential metaverse industry technology, next-generation computer rendering, human-computer interfaces, and artificial intelligence. In addition, it intends to establish a market for digital assets using nonfungible token technology.
Zhengzhou has joined many Chinese cities and provinces pledged to become leaders in the nation’s metaverse development. Shanghai is pursuing its metaverse ambitions, estimating that its metaverse industry will generate 350 billion yuan ($49.6 billion) in annual revenue by 2025.
