Shanghai’s Strategic Bet on Live-Streaming Industry: A Potential $85 Billion Boost to China’s Economy by 2026

Shanghai is banking on the live-streaming industry to stimulate China's lackluster consumer spending. According to a three-year strategy, the local market is projected to produce close to US$85 billion in internet sales by the year 2026.

The city government of Shanghai has announced its intentions to strengthen its live-streaming industry, with a goal to achieve roughly US$85 million in online sales by 2026. This strategy comes as the city, a major financial center in China, aims to increase consumer spending amidst a sluggish national economy.

The "Three-Year Action Plan for High-Quality Development of Shanghai's Live-Streaming Economy (2024-2026)" was unveiled on Monday. By 2026, it aims for the local industry to produce an annual gross merchandise value of 600 billion yuan (US$84.6 million), create 10 leading live-streaming platforms, nurture a group of multichannel networks (MCNs) and brands, and develop a hundred unique live-streaming situations.

Multi-Channel Networks (MCNs) are firms that assist influencers who live-stream in handling their operations.

The recently unveiled triennial strategy, a progression from the 2021-2023 scheme, underscored the influence of the live-streaming sector in stimulating consumer expenditure and enhancing the reputation of Shanghai.

The city authorities are planning to tap into the possibilities of the live-streaming market to boost consumption, commerce, industry, and culture, providing a fresh impetus to Shanghai's economic and social growth, as outlined in the blueprint by the Shanghai Municipal Commission of Commerce.