Shanghai Wants to Establish Over 100 Metaverse-Focused Companies Within the Next Three Years
- Shanghai plans to explore the $52 billion virtual reality industry for more excellent connectivity.
Last week, the Shanghai authorities released a report containing its plan to explore the metaverse sector within the next three years. Furthermore, the industry is estimated to be worth approximately 350 billion yuan ($52 billion). Shanghai seeks a better understanding of newer technologies.
However, its current focus is on cloud computing, 5G technology, chips, virtual reality headsets, and other products and services related to the metaverse space. Part of the authorities’ plans is to establish over 100 companies that will have a mastery of the core metaverse technologies. Also, it plans to develop 10 “chain owner” firms that can compete with any other similar companies globally.
Shanghai Metaverse Goal
Last December, China’s biggest city released a 5-year plan to develop its metaverse space. This goal involves a better understanding of the metaverse’s foundational technologies through research. The sensors and blockchain usage are some technologies Shanghai plans to study and explore during this period.
Also, Shanghai seeks to see the application of the metaverse in social entertainment, public services, business offices, and various industries. Some of such industries include industrial manufacturing, electronic games, and production safety.
Shanghai’s industry planner (Shanghai commission of economy and informatization) isn’t only focused on the metaverse. It also has plans to have a more digitized economy and low carbon emissions technologies. A recent Statista data showed that China, Hong Kong, and Singapore have a greater interest in the metaverse and non-fungible tokens (NFTs) than the US and Europe.
Side Notes
Last March, Beijing released a similar metaverse development plan. Beijing identified seven key technologies China intends to explore deeper. According to the Beijing report, the ultimate goal is for the nation to be self-reliant in science and technology.
The metaverse’s popularity continues to soar, especially last year. Last October, social networking giant, Facebook, changed its brand name to ‘meta’. Also, Microsoft founder, Bill Gates, predicted last December that most virtual meetings will be held in the metaverse by 2025.
Furthermore, China’s most popular social networking site, Baidu, held a conference in the metaverse. Baidu claimed it was the first time any Chinese meeting would occur in the metaverse.
Baidu also used that conference to announce the opening of its metaverse app for developers. However, the firm’s spokesperson said it might be six years before the app goes live. Nevertheless, China’s state media has warned about the risks of scams under the guise of the metaverse.
Some industry analysts believe China will likely release new rules regarding metaverse development.
You’d recall that China enforced the ban on all blockchain-related technologies such as cryptocurrencies last year.
However, with Shanghai’s development plans, likely, China’s clampdown on the metaverse may not be as aggressive as its clampdown on digital assets, crypto mining, and other offshoots of blockchain technology.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
