A group of technology companies in Guangzhou, capital of southern Guangdong province, has formed a new industry association focused on metaverse-related developments, as the frenzy continues over what some consider the next stage of the internet weeks after the concept emerged as an unlikely topic in China's "two sessions".

Five tech companies in Guangzhou - including GrowthEase, a business technology services provider under video gaming giant NetEase, and browser game publisher 37Games - on Friday established the Guangzhou Metaverse Innovation Association in the city's tech-centric Nansha district, according to a report by the Nanfang Daily, the official newspaper of the Guangdong provincial committee of China's Communist Party.

That alliance aims to serve as Guangzhou's first salvo in the race to build China's metaverse ecosystem, while enabling the southern city to accelerate development of its digital economy, according to the report. The metaverse refers to an immersive virtual world, where digital representations of people can interact with each other like they do in real life.

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Nansha, one of 11 districts in Guangzhou, is home to the biggest of the three pilot free trade zones in the Greater Bay Area. There are more than 300 artificial intelligence-related companies in the district, 10 of which are either listed on the mainland or in Hong Kong, according to official data.

An aerial view of the skyline of Guangzhou, capital of southern Guangdong province, which is home to the biggest of the three pilot free trade zones in the Greater Bay Area. Photo: Shutterstock alt=An aerial view of the skyline of Guangzhou, capital of southern Guangdong province, which is home to the biggest of the three pilot free trade zones in the Greater Bay Area. Photo: Shutterstock>

The Guangzhou Metaverse Innovation Association sets an example on how private enterprises and local governments can collaborate in emerging technologies, according to Wang Guilin, director of the city's Science and Technology Bureau.

Following its establishment, the association now counts 23 Guangzhou-based tech companies and research institutions, as well as Chinese AI speech recognition tech giant iFlyTek, which is based in Hefei in eastern Anhui province.

Founding member 37Games and GrowthEase parent NetEase did not immediately respond to a request for comment on Sunday.