The newly introduced policy draft includes a series of lucrative cash benefits to lure metaverse-related enterprises to the city. According to reports, on May 24, the Chinese city of Zhengzhou issued a statement regarding the issuance of a series of policy proposals to hold up Metaverse companies functioning in the region.
Following the proposal, the municipal government plans to create a specialized fund worth 10 billion yuan ($1.42 billion) to act as a pillar for the growth and development of the industry. As stated by the proposal, metaverse companies will be allowed a capital investment of up to 200 million yuan ($28.34 million) if they choose to move their headquarters to Zhengzhou.
Moreover, these companies will have access to privileges such as rent subsidies. Irrespective of their headquarters’ location, any company involved in creating metaverse applications within the city will have the chance to secure up to 5 million yuan ($710,000) for each project approved by the municipal government. The exact date for fund allocation is still unknown.
Soon after revealing the funding policies, the municipal government of Zhengzhou sketched out its prospective plan for the future development of metaverse companies in the city. The municipal government anticipates that metaverse-related industries in Zhengzhou will generate revenue exceeding 200 billion yuan ($28.34 billion) by the end of 2025.
The policy encompasses local enterprises operating in two significant areas, research endeavors focused on metaverse-related technologies such as virtual reality, augmented reality and brain-computer interfaces and the utilization of metaverse technologies in real-world industries such as education, entertainment and commerce.
The city aims to provide cash incentives to metaverse companies when they list on China’s major stock exchanges. Furthermore, the government is all set to join forces with other governmental bodies and investment firms to secure an extra 50 billion yuan ($7.08 billion) in funding to prop up a range of metaverse-related development projects.
The plan circumscribes ‘blockchain technology’, the paramount technology of the metaverse industry alongside next-gen computer rendering, human-computer interfaces and AI. In addition to this, the city aims to design and create a digital asset market with the help of NFT technology.