China’s local governments rush to embrace metaverse despite state media warnings
- Authorities in several major cities have unveiled plans to support the development of the metaverse
- Communist Party mouthpiece People’s Daily warned people in November to stay rational amid “metaverse mania”
The metaverse concept is being featured in a slew of work plans by local governments in China, even as state media outlets have repeatedly warned domestic companies against engaging in what they called a market frenzy.
Authorities in the central city of Wuhan and the eastern city of Hefei both pledged to boost the development of the metaverse in the coming five years, according to their respective proposals released this week.
Wuhan said it aimed to integrate metaverse, big data, cloud computing, and blockchain with the “real economy”, while Hefei said it would cultivate a number of leading companies and products in “cutting-edge fields” such as the metaverse.
The idea of metaverse – commonly defined as an immersive virtual world where users can interact with each other in various ways such as playing and trading – gained traction around the world during the Covid-19 pandemic.
While many Chinese Big Tech companies and start-ups have also said they are keen on developing metaverse products and services, state news outlets have cautioned against what they see as speculative behaviour.
People’s Daily, the Communist Party’s mouthpiece, said in November that “everyone still needs to stay rational in understanding the current metaverse mania”. Last month, the paper said that people who engage in the sales of virtual properties risk “getting burned”.
In November, the state-run Economic Daily also warned against speculative trading in metaverse concept stocks, sending share prices tumbling before going up again. In a commentary, the paper said that retail traders should avoid hastily putting money into an “immature” concept like the metaverse, since it is a project that requires long-term investment and development.