Shanghai’s $85 Billion Gamble: Boosting China’s Economy through Live-Streaming Revolution

Shanghai is banking on the live-streaming market to stimulate China's sluggish consumer spending. As per a strategy set to span three years, the local industry is projected to produce approximately US$85 billion in internet sales by 2026.

The city administration of Shanghai has announced its intention to enhance the city's live-streaming industry, aiming for approximately US$85 million in internet sales by 2026. This strategy comes as the Chinese economic powerhouse aims to increase consumer expenditure amidst a sluggish national economy.

The "Three-Year Strategy for Superior Growth of Shanghai's Live-Streaming Economy (2024-2026)", unveiled on Monday, aims to have the local industry produce a yearly total goods value of 600 billion yuan (US$84.6 million) by 2026. It also plans to establish 10 premier live-streaming platforms, nurture a group of multichannel networks (MCNs) and brands, and create a hundred unique live-streaming experiences.

MCNs are firms that assist influencers who live-stream in handling their operations.

The latest triennial strategy, an extension of the 2021-2023 scheme, emphasized the significance of the live-streaming sector in boosting consumer expenditure and enhancing the reputation of Shanghai.

The city administration plans to harness the power of the live-streaming market to boost consumer spending, commerce, manufacturing, and culture, thus injecting fresh energy into Shanghai's overall economic and social growth, according to the blueprint from the Shanghai Municipal Commission of Commerce.