Shanghai's Live-Streaming Sector: A Government Initiative to Stimulate the Economy

Government Initiatives for Economic Growth

The Shanghai municipal government has unveiled plans to strengthen the live-streaming sector, setting an ambitious target of generating nearly US$85 million in online sales by 2026. This initiative is designed to stimulate consumer spending in a lackluster national economy.

Three-Year Action Plan Overview

Under the “Three-Year Action Plan for High-Quality Development of Shanghai’s Live-Streaming Economy (2024-2026)” released on Monday, the sector is expected to achieve an annual gross merchandise value of 600 billion yuan (approximately US$84.6 million). The plan includes establishing 10 premier live-streaming platforms, nurturing a range of multichannel networks (MCNs), and creating a hundred unique live-streaming scenarios.

Role of MCNs and Consumer Support

MCNs, which assist live-streaming influencers in managing their businesses, will play a critical role in this development. The government emphasizes leveraging the live-streaming industry to boost consumer spending and enhance Shanghai’s reputation.

Economic Impact and E-Commerce Trends

Shanghai’s e-commerce trade value has shown resilience, rising 12.7 percent year-on-year to 897.9 billion yuan in the first quarter. Online retail sales surged 17.2 percent to 361.5 billion yuan, accounting for 11 percent of the national total.

Support for E-Commerce Entities

The government also promises to assist eligible e-commerce entities by enhancing computing power, aligning with Shanghai’s push for advancements in artificial intelligence.

Global Expansion Focus

Shanghai is set on expanding the global reach of its live-streaming sector. Platforms and MCNs are encouraged to target foreign markets while fostering cross-border e-commerce in line with China’s Belt and Road Initiative, known as Silk Road e-commerce.

Potential Market Growth

According to iResearch, China’s live-streaming e-commerce market is valued at 4.9 trillion yuan in 2023, reflecting a growth of 35.2 percent year on year, with a forecast of an 18 percent compound annual growth from 2024 to 2026.