coingeek.com
State-backed China Mobile has launched a metaverse alliance to enhance collaboration among firms building in the industry.
Local news outlet Shanghai Securities Journal reported on June 28 that the new alliance will include Chinese tech behemoths like Xiaomi (NASDAQ: XIACY), Huawei, Unity China, and Xunfei. The 24 founding members are drawn from enterprises experimenting with blockchain, virtual reality, and metaverse content creation.
A vital objective of the alliance is to improve the state of metaverse development in China, specifically among private enterprises, according to the report. The alliance aims to achieve its lofty ambitions by creating an investment fund to support firms building innovative solutions.
At the official unveiling, Migu Culture General Manager Liu Xin was announced as the Chief Secretary of the alliance. Xin disclosed that the alliance will adopt a three-pronged approach toward achieving its aims, with the first two being “standard co-construction” and “resource sharing.”
The last approach is developing a “win-win” concept to see alliance members have a share in the dividends of the metaverse industry.
“The establishment of the Metaverse Industry Alliance led by China Mobile provided useful ideas and references for promoting the technological innovation and development of the Metaverse, and provide[s] good opportunities for strengthening industry exchanges and cooperation,” stated Wen Ku, head of China Communications Standards Association.
Since China’s blanket ban on digital currencies, metaverse development has exploded in leaps and bounds. Several Chinese cities, including Shanghai and Beijing, have unveiled their metaverse strategies designed to create jobs and improve the state of the tourism sectors.
Nanjing City became the latest to join the metaverse bandwagon by unveiling a three-year plan to attract the leading industry players to the city.
Private enterprises falter
In recent times, the enthusiasm of private firms dabbling in the metaverse has waned, a fact underscored by the fate of Chinese tech giants Baidu and Tencent.
In February, it was reported that Tencent intended to bring the curtains down on its metaverse ambitions through a “personnel reshuffle” of its extended reality unit. Baidu’s metaverse ambitions also suffered a similar fate after executives claimed that “it was difficult to see a good business model for the metaverse business in the short term.
Meta (NASDAQ: META) and Microsoft (NASDAQ: MSFT) have suffered financially since throwing the weight behind metaverse development, with governments picking up the gauntlet to encourage innovation.