The Shanghai Municipal Government has officially released a detailed action plan aimed at transforming the city into a global powerhouse for the metaverse industry. The document sets an ambitious target: to cultivate a metaverse cluster worth $52 billion (approximately 370 billion RMB) by 2025. As part of this goal, Shanghai plans to foster at least 10 internationally competitive innovative enterprises and 100 companies specialized in core metaverse technologies.
Key Application Scenarios and Core Technologies
The plan outlines several priority areas for metaverse integration, including virtual commerce, education with virtual reality, and tourism and entertainment with a virtual element. It also emphasizes the need to advance foundational hardware and software, specifically naming display technology, processors, 5G/6G communication, and artificial intelligence as critical enablers for a high-quality metaverse experience.
Funding and Incentive Mechanisms
While the guideline does not specify the exact total government investment, it proposes the establishment of special funds dedicated to the metaverse industry. These funds would offer investment subsidies, interest discounts on loans, and tax incentives in accordance with laws and regulations to support technology research and development. The strategy mirrors China’s previous successful approaches in boosting the semiconductor and AI sectors, leveraging both direct fiscal tools and social capital.
Global Competition and Context
Shanghai is not alone in pursuing metaverse leadership. South Korea has already invested $177 million in metaverse projects under its “Digital New Deal,” and Dubai is actively making its government services metaverse-ready. Domestically, Chinese cities like Beijing and Shenzhen have also launched competitive metaverse policies. Shanghai’s strength in finance, technology talent, and consumer market gives it a distinct edge in attracting top-tier enterprises and talent.
Industry analysts caution that the metaverse remains an early-stage concept with challenges in technological maturity, business model sustainability, and regulatory clarity. However, with a clear roadmap and substantial financial commitment, Shanghai is positioning itself as a key player in the global metaverse race. The success of this 2025 target will depend on continued innovation, cross-sector collaboration, and international partnerships.