Blockchain technology was first mentioned in China’s draft national five-year political plan, the final version approved by lawmakers and advisers in mid-March 2021.
By March 2021, China has a nationwide ban on cryptocurrencies, but the country has embraced innovations such as artificial intelligence and smart cities.
China’s 14th Five-Year Plan highlights the country’s overall goals and priorities for the period up to 2025. As part of President Xi Jinping’s Vision 2035 strategy, blockchain will play “an important role in the next round of technological innovation and industrial transformation.”
As part of Chinese President Xi Jinping’s Vision 2035 strategy, blockchain will play an important role in the development of the country’s future.
Xi Jinping believes that the country’s digital economy “will turn China into a world leader.” As a smart cities initiative, most of them had already started implementing Blockchain”. The combination of AI with cloud computing (such as AWS ) and blockchain has enabled several Chinese cities to make tremendous progress in just the past few years. For example, in 2016, China began building smart cities and even implemented the City ID blockchain system, which provides connectivity and data exchange between cities.
As part of the president’s five-year initiative, China’s courts are expected to modernize their systems. Their task is to integrate data while storing evidence on the blockchain network. It will be the first artificial intelligence-based legal system in China. In addition, China’s legal system has long been working to strengthen the protection of human rights, as storing evidence on the blockchain network precludes the possibility of changes.
National laboratories will be established. The Chinese government intends to revise existing regulations and policies to stimulate the flow of venture capital to tech startups and expand tax breaks to encourage research and development.
2020 Start Of Development Of a Blockchain Platform For Trade Finance From 5 Large Chinese Banks
In early September 2020, it became known that the five largest banks in China are creating a blockchain platform for interbank transactions in the field of trade finance. Credit institutions have teamed up with the China Banking Association (CBA) to develop the product. More details here.
In China, 140 Electronic Government Services Work On The Blockchain Platform.
In mid-July 2020, the Beijing government published the first report on the use of blockchain to provide government services in China. The document says that the technology will allow civil servants to abandon paper documents and cut 40% of their maintenance costs.
According to the published report, 140 electronic government services operate on the blockchain platform. They fall into three categories: “data exchange,” “collaborative data processing,” and “electronic certificate storage.” The official in charge of the project said:
Blockchain is a real breakthrough in the exchange and processing of data, which gives us opportunities that are completely inaccessible with traditional methods. Storing electronic certificates on the blockchain significantly increases the reliability and efficiency of work and simplifies the data verification process.
140 e-government services in China are built on blockchain
One of the services transferred to the blockchain is real estate registration. The relevant departments contact the regional real estate registration company and save the necessary information in the blockchain, confirming the electronic license. On the new blockchain platform, 11 government bodies can exchange the necessary information and documents, including the Municipal Planning Commission, the Commission on Housing and Rural Development in Cities, the Tax Bureau, the Public Security Bureau, and others.
Earlier, Chinese President Xi Jinping said that China should take a leading position in the implementation of blockchain in public administration. Among other things, China is considering using blockchain technology to exchange data between healthcare facilities in the face of future pandemics. However, by mid-2020, Chinese local governments are facing major challenges in implementing blockchain applications, as stakeholders are reluctant to share their data.
China Launches National Blockchain Vulnerability Database
In early June 2020, China’s National Internet Emergency Response Center (CERT) launched a website dedicated to blockchain vulnerabilities. More details here.
China Sets Up a National Blockchain Development Fund
At the end of May 2020, the National People’s Congress, China’s highest legislative body, announced the creation of a national blockchain development fund. Board member Jieqing Tan claims blockchain can modernize the country’s governance.
This initiative is a broadly targeted strategy that calls for the use of blockchain for both smart government and industry development. Tang wants to see China as a leader in both blockchain technology and its applications. He also suggested that blockchain development would help protect national sovereignty.
National People’s Congress, China’s Highest Legislature, Announces the Establishment of a National Blockchain Development Fund.
Blockchain is supposed to help create a “smart” government to tackle various problems, including data fragmentation, uneven development, lack of mutual trust in cooperation, and “oversight of urban data.”
While China is actively developing the blockchain space, much of the work is done within large enterprises. Smaller players lack talent, investment, and growth opportunities, Tan said, and the lack of standards further hinders the development of new technologies. Tan suggested that a dedicated blockchain development fund could stimulate entrepreneurship, research, and development. In such a market, just large enterprises are not enough. We need a complete ecosystem, ”Tan said.
Tan proposed to select key industries and enterprises for the development of blockchain applications and develop government blockchains such as a forensic certificate store. In addition, the fund should offer political and financial support, strategic direction, and industry cooperation and coordination.
Blockchain Entered The Technological State Strategy Of China
On April 20, 2020, the State Development and Reform Committee of the PRC announced its intention to develop blockchain technology, making it one of China’s technological infrastructure components. In particular, the committee plans to fund blockchain-related projects and promote technology-related initiatives.
The blockchain should become one of the state’s information infrastructure components, which, in turn, is one of the three links of the “new infrastructure,” which representatives of the committee told reporters about.
Blockchain has become a strategically important technology for China
Along with the blockchain, China’s information infrastructure components will include 5G, the Internet of Things, satellite Internet, artificial intelligence, cloud technologies, data centers, and the so-called “smart computing centers.”
The authorities plan to support research and development projects related to the listed technologies. These developments can find application in the energy, public transport, freight, and industrial sectors.
Assistance in the selection of financial services/organizations
Another two links of the new infrastructure will be the infrastructure of integration (it will include a smart system of public transport and cargo transportation and smart energy) and the infrastructure of innovation (it will include networks of scientific, technological, and industrial centers).
The share of funds that China plans to spend on blockchain technology has not been disclosed. However, it is known that total investments in infrastructure projects by the end of 2020 may reach 22-26 trillion yuan ($ 3.1-3.7 trillion).
It is noteworthy that in April 2019, the State Committee for Development and Reforms of the PRC included the mining of cryptocurrencies (based on the same blockchain) in the list of activities that should be prohibited. In October 2019, Chinese President Xi Jinping announced the need to assess the prospects for using the blockchain more carefully, and the committee abandoned its plans.