Shanghai’s $85B Gamble: Boosting China’s Sluggish Economy through the Live-Streaming Industry

Shanghai is banking on the live-streaming industry to stimulate China's sluggish consumer spending. According to a three-year plan, the local industry is expected to produce close to US$85 billion in online sales by 2026.

The municipal government of Shanghai has announced its intentions to enhance the city's live-streaming industry, aiming for a target of almost $85 million in online sales by 2026. This initiative comes as the financial heart of China is attempting to increase consumer expenditure amidst a sluggish domestic economy.

On Monday, the "Three-Year Strategic Plan for the Superior Growth of Shanghai's Live-Streaming Economy (2024-2026)" was unveiled. By 2026, it aims for the local industry to produce an annual total product value of 600 billion yuan (US$84.6 million), create 10 leading live-streaming platforms, promote a variety of multichannel networks (MCNs) and brands, and introduce a hundred "unique scenarios" for live-streaming.

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

The recent triennial strategy, an upgrade from the earlier 2021-2023 scheme, underscored the significance of the live-streaming sector in stimulating customer expenditure and enhancing Shanghai's reputation.

The city administration plans to tap into the possibilities of the live-streaming economy to boost spending, commerce, industry, and culture, providing a fresh stimulus to Shanghai's comprehensive economic and social growth, according to the blueprint released by the Shanghai Municipal Commission of Commerce.