Fuzhou lures Web3 firms with incentives to set up shop in the city

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The city of Fuzhou has confirmed its ambitions to be the leading Web3 hub of China in the coming years, splurging on subsidies to attract industry firms to the region.

According to a joint report by the Fuzhou Municipal Bureau of Finance and the local branch of the Chinese Communist Party (CCP), Fuzhou’s administrators unveiled several strategies to achieve its lofty objectives. A core feature of the scheme is the offer of rent subsidies to blockchain technology firms relocating to the city.

Blockchain firms operating in select industrial complexes in Fuzhou will be eligible to obtain rent subsidies of up to CNY600,000 (US$86,084) per 1,000 square meters. Projects that receive proper certifications from regulators can receive grants of up to CNY500,000 (US$71,737), a move that pundits believe will sweeten the deal.

The bulk of the sum will be distributed to the firms upon meeting certain milestones like revenue or additional licensing. Special priority will be given to firms engaged in providing blockchain training to citizens, while projects designated as national-level laboratories for blockchain can receive up to CNY1 million (US$143,474).

Fuzhuo’s administrators have incorporated blockchain as part of efforts to streamline its governmental processes, notably using distributed ledgers to store its data. The city showcased its extensive blockchain-backed process at last month’s sixth Digital China Summit & Exhibition.

Fuzhuo has also played an integral role in the digital yuan experiment by the People’s Bank of China (PBoC), being part of the initial handful of cities selected to participate in the pilot. Since then, the city has played host to several PBoC initiatives designed to stimulate the adoption of the CBDC, including New Year subsidies and the ‘red packet’ features.

Across mainland China, blockchain adoption is picking up pace, with the ruling Chinese Communist Party (CCP) designating the technology as a core part of boosting the nation’s digital economy. The capital city of Beijing recorded a new blockchain research center which the government says will develop 500,000 new experts in the space.

Appetite for blockchain grows even larger

After China imposed a blanket ban on digital assets in the summer of 2021, several experts predicted the death of the local blockchain ecosystem. However, over 18 months after the ban, the industry has grown by leaps and bounds, with the government relying on it for its metaverse ambitions and central bank digital currency (CBDC).

In September 2022, China’s Nanjing University of Information Science Technology renamed its engineering department after the metaverse. Several Chinese Big Tech firms like Tencent and Huawei have since dipped their feet into DLT to satisfy the growing local demand.

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