China’s all-in approach to the metaverse could spell trouble for U.S. tech supremacy
- China is poised, and perhaps more determined than ever, to make the metaverse central to its economy in the future.
- China wants to expand the VR industry output to 350 billion yuan (U.S. $48 billion) by 2026 — six times the level of 2021 — showing it aims to become a world leader in the emerging metaverse economy.
- The Chinese government announced a sweeping vision for AI excellence, calling for Chinese AI to be the world’s undisputed leader by 2030.
In late 2021, Facebook rebranded its corporate identity to “Meta” to illustrate its commitment to the promise of a “metaverse,” which, as Meta describes it, “is a new phase of interconnected virtual experiences using technologies such as virtual and augmented reality.”
Chinese companies are investing heavily in the field. major chinese internet companies like Tencent, Baidu and Alibaba have announced plans to begin developing metaverse technologies. The state-owned telecom firms are also directing funds into the metaverse.
In 2022, China’s crypto asset regulation extended into similar digital assets, such as NFTs (nonfungible tokens) and virtual assets.
According to the MIIT, financing for the VR industry across china saw a 100% year-on-year increase in 2021.