Main article: Blockchain
2023
China introduces a single blockchain platform for identity identification
On December 12, 2023, China announced the introduction of a single blockchain-based identification platform. A service called RealDID is said to be designed to verify the identity of users while minimizing the risks of personal information leakage. Read more here.
Shanghai approves blockchain development strategy in the public sector
On July 31, 2023, the Shanghai authorities announced a comprehensive program for the development of the digital economy. As part of this initiative, China's largest city and financial center intends to transfer its infrastructure to blockchain. Read more here.
China launches giant blockchain cluster capable of processing 240m smart contract operations every second
In early February 2023, it became known that a large-scale blockchain cluster was launched in Beijing, capable of processing 240 million operations on smart contracts every second. Read more here.
2022
China accounts for 84% of blockchain patents in the world
On September 2, 2022, the Prime Minister PEOPLE'S REPUBLIC OF CHINA announced that he China had the largest number of patents blockchain for all countries of the world - 84% of the total, which indicates the continued commitment Beijing of this technology, despite the continued many years of tough restrictions and a ban on. cryptocurrencies
Wang Jianwei, deputy director of the information technology development office at the Ministry of Industry and Information Technology, disclosed the figure without specifying a time frame. He added that blockchain accelerates integration with the economy, services to ensure people's living conditions, smart cities and administrative services.
{{quote 'Many of the blockchain patents relate not only to blockchain but also to traditional internet technologies such as computing to ensure privacy and cryptography, said Gao Chenshi, a cryptography expert who is a founding partner of blockchain developer Shanghai Hashvalue Information Technology. }} Blockchain is a decentralized registry technology that is best known as the backbone of cryptocurrencies. The fact that it is open source and does not require the involvement of a central body makes it attractive for various applications, but in China the technology is tightly regulated and requires registration with the Cyberspace Administration of China (CAC).
China has massive plans for blockchain technology. In 2019, President Xi Jinping said blockchain would play an important role in the next phase of technological innovation and industrial transformation.
From 2015 to June 2021, Chinese blockchain patent applications accounted for almost 60% of the total, with the United States second and South Korea third, according to a report by 01Caijing think tank and patent consultancy PatSnap.
However, only 19% of Chinese applications were approved, while the share of approved applications from the United States and South Korea was 26% and 43%, respectively, the report said.[1]
Launch of blockchain integration program in national economy and private sector
China On February 1, 2022, the authorities announced the launch of a program for integration blockchain the national economy and private sectors. Government is going to create 15 pilot zones in which new technologies will be designed, tested and implemented in everyday life. The initiative will cover 15 state departments and more than 164 private organizations - from banks and IT companies to leading ones. car makers
The authors of the project were experts from the Office of Cyberspace Affairs of China (CAC). According to the ministry, pilot zones will be created on the basis of the most advanced regions of the country and in industrial regions - in Beijing, Shanghai, Guangzhou, Chengdu, as well as in the southern provinces of Guangdong and Sichuan. The list of the programs themselves will be presented later, but now the regulator is ready to name the key areas in which the blockchain will be used.
The list includes: production,, power government and tax services,,, law, and education, health care trade finance as well as cross-border finance. The government will not be able to implement new technologies in each industry on its own, so CAC brought 164 organizations to work, including hospitals leading universities and private companies. It is already known that SAIC-GM-Wuling Automobile, China National Offshore Oil, Beijing Gas Group Co and Industrial and Commercial Bank of China were selected for the project.
 | The cyberspace administration of each area and the relevant industry regulator should fully use blockchain in promoting data exchange, optimizing business processes, reducing operating costs and increasing the effectiveness of cooperation in creating reliable systems, government officials said. |  |
Despite Beijing's strong interest in blockchain, China it intends to tightly regulate, cryptocurrencies using block chains as a non-financial system. The PRC government has already established a complete ban on all cryptocurrency transactions and, mining explaining its decision by the danger of the emergence of a "shadow economy." Instead of decentralized digital currencies, the authorities plan to use digital yuan stablecoin, the work of which is fully regulated by the Central Bank of China[2]
China creates NFT industry on state blockchain platform
China On January 13, 2022, it became known that an state blockchain infrastructure is being created in the Blockchain Services Network (BSN) to support the use of non-replaceable tokens (), NFT which is an important step towards creating a local NFT industry that is not related to cryptocurrencies more. here
2021
Blockchain introduced in Chinese prisons to fight bribes
In mid-December 2021, it became known that the intellectual prison system based on, blockchain used in 21 prisons in the province, China was approved, Ministry of Justice which recommended extending this idea to more than 600 prisons throughout China.
According to the report, the platform adopted by the provincial prison authority has more than 800 functions and almost 1.2 thousand procedures that provide a universal solution for assessing prisoners, their punishment and incentive systems. The management system deals with mitigation and parole, for example, related to the courts and the prosecutor's office, so that the entire procedure can be carried out online. Mitigation and parole decisions will be open to the public on the official website of the Jiangsu Prisons Authority, as well as on the information website of the provincial government.
Corruption and abuse in Chinese prisons, where about 1.8 million prisoners are held and 300 thousand guards work, often cause public anger. Chinese authorities are working to eliminate unreasonable mitigations and parole in closed institutions.
| | The entire police enforcement process will leave online records and 100% of cases can be traced. The system will provide a complete chain of data about the decisions, as well as about the employees who made these decisions. Prisoner data cannot be deleted or edited. The system will automatically send any deviations to a special department for analysis by employees from the main department, "said Jiangsu Governor Wu Zhenglong. | |
Blockchain is a distributed database in which information is synchronized and shared by all participants. The data does not belong to any authority, so the decentralized design allows it to be made transparent and resistant to hacking, which can effectively reduce corruption or abuse in the prison environment.
In March 2021, blockchain was first mentioned in China's national five-year plan to 2026. According to this Vision 2035 development plan and strategy, blockchain is one of the digital industries that should be cultivated and expanded, the official document says. The technology has also been used in some administrative applications in China.[3]
Blockchain first entered the "five-year plan" of the PRC
Blockchain technology was first mentioned in China's draft national five-year policy plan, the final version of which was approved by lawmakers and advisers in mid-March 2021.
By March 2021, China has a nationwide ban on cryptocurrency, but the country has adopted innovations such as artificial intelligence and smart cities.
In the 14th plan - "five-year plan" of China, the general goals and priorities of the country for the period until 2025 are emphasized. 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."
Xi Jinping believes that the country's digital economy "will turn China into a world leader." Many cities are already introducing blockchain as part of their smart cities initiative. Combining AI with cloud computing (such as AWS) and blockchain has allowed several Chinese cities to make tremendous progress in the last few years alone. 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, it is assumed that China's courts will modernize their systems. Their task is to integrate data when storing evidence in a blockchain network. It will be China's first artificial intelligence-based legal system. In addition, China's legal system has long been working to strengthen human rights protections, as storing evidence on the blockchain network eliminates the possibility of changes.
To achieve the set goals, national laboratories will be created. The Chinese government is set to review current rules and policies to encourage the flow of venture capital into tech startups, as well as expand tax breaks to encourage research and development.[4]
2020
The start of the development of a blockchain platform for trade financing from 5 large banks of the PRC
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 financing. To develop the product, credit institutions have teamed up with the China Banking Association (CBA). Read more here.
In China, 140 electronic public services operate on the blockchain platform
In mid-July 2020, the Beijing government published the first report on the use of blockchain to provide public services in China. The document states that the technology will allow civil servants to abandon paper documents and reduce 40% of the cost of servicing them.
According to the published report, 140 electronic public services operate on the blockchain platform. They are divided into three categories: "data exchange," "joint data processing" and "storage of electronic certificates." The official responsible for the project said:
| | Blockchain is a real breakthrough in data exchange and processing, which gives us opportunities that are completely inaccessible under traditional methods. Storing electronic certificates on the blockchain significantly increases reliability and efficiency, and simplifies the data validation process. | |
One of the services transferred to blockchain was real estate registration. The relevant departments contact the regional real estate registration enterprise and store the necessary information in the blockchain, confirming the electronic license. On the new blockchain platform, 11 state bodies can exchange the necessary information and documents, including the Municipal Planning Commission, the Commission on Urban Housing and Rural Development, the Tax Bureau, the Public Safety Bureau and others.
Earlier, Chinese President Xi Jinping said that China should take a leading position in introducing blockchain in public administration. Among other things, China is considering using blockchain technology to exchange data between medical institutions in the face of future pandemics. However, by mid-2020, Chinese local authorities face major challenges in implementing blockchain applications as stakeholders are unwilling to share their data.[5]
China launches national database of blockchain project vulnerabilities
In early June 2020 China National Internet Emergency Response Center (CERT) , launched a website dedicated to vulnerabilities in. blockchain Read more. here
China creates 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 that blockchain can modernize the country's management system.
The initiative is a widely targeted strategy that calls for blockchain to be used both to create a "smart" government and to develop industry. Tang wants to see China as a leader in both the development of blockchain technologies and its applications. He also suggested that the development of blockchain would help protect national sovereignty.
It is assumed that blockchain will help in creating a "smart" government to solve various problems, including in the field of data fragmentation, uneven development, lack of mutual trust in cooperation and "supervision of urban data."
Although China is actively developing the blockchain sphere, a significant part of the work is carried out within large enterprises. Smaller players lack talent, investment and growth opportunities, Tan believes, and the lack of standards further hinders the development of new technologies. Tan suggested that a dedicated blockchain development fund could stimulate entrepreneurs, research and development.
| | Only large enterprises are not enough in such a market, we need a complete ecosystem, "Tang said. | |
Tan proposed to select key industries and businesses to develop blockchain applications, as well as develop government blockchains such as the court certificate store. In addition, the fund should offer political and financial support, strategic leadership, as well as cooperation and coordination in the industry.[6]
Blockchain entered the technological state strategy of China
On April 20, 2020, the State Committee for Development and Reform of the PRC announced its intention to develop blockchain technology, making it one of the components of China's technological infrastructure. The Committee, in particular, plans to finance blockchain-related projects and promote initiatives related to this technology.
Blockchain should become one of the components of the state's information infrastructure, which, in turn, is one of the three links of the "new infrastructure," which representatives of the committee told reporters about.
Along with blockchain, the components of China's information infrastructure will be: 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, provided that these developments can be used in the power, public transport and freight transportation and the industrial sector.
Two more links of the new infrastructure will be the integration infrastructure (it will include a smart system of public transport and freight transportation and smart power) and the innovation infrastructure (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 reported. However, it is known that total investments in infrastructure projects by the end of 2020 can 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 cryptocurrency mining (which is based on the same blockchain) in the list of activities that should be prohibited. After Chinese President Xi Jinping announced in October 2019 the need to more carefully assess the prospects for using blockchain, the committee abandoned its plans.[7]
2019
Fitch Ratings: China Leads in Using Blockchain to Issue Securities
In early December 2019, the international rating agency Fitch Ratings issued a report in which it reported that China is developing blockchain technologies for securitization faster than other countries in the world.
This financial term means one of the forms of raising financing by issuing securities secured by assets generating stable cash flows (for example, a portfolio of mortgage loans, car loans, leasing assets, commercial real estate generating stable rental income, etc.). First of all, securitization may be of interest to commercial banks with significant portfolios of homogeneous loans, leasing companies, real estate funds and developers.
Fitch Ratings notes that in China, several blockchain platforms for securitization are developing independently of each other. By the beginning of December 2019, the technology is used only for some operations of this type of financing, and not as a comprehensive solution. It is expected that blockchain in this market will develop as technology, legislation and regulation improve, the report says.
At least eight secure asset security transactions in the Celestial Empire took place using blockchain in some securitization components. All transactions were carried out in the private sector, with the exception of one transaction concluded by the state financial institution Bank of Communications: in this case, a mortgage worth 9.3 billion yuan ($1.3 billion) was secured. The bank used Jucai Chain blockchain technology, through which details of priority mortgages and payments were recorded in the same chain, giving investors a complete and transparent view of transactions.[8]
Deloitte: China considers blockchain its strategic weapon
On June 27, 2019, Deloitte published the results of a study according to which 73% of Chinese companies consider blockchain to be one of the country's five strategic priorities.
To create this report, titled "Global Blockchain Review 2019," analysts of 1,386 company representatives from 11 countries, including 304 respondents from the United States and 200 from China, to assess their views on the main directions of development and investment in blockchain technologies.
The study was conducted between February 8 and March 4, 2019. According to the survey, in China, the share of employees who consider blockchain one of the priority areas of technology development turned out to be the highest - almost 75% of Chinese enterprises believe so, while the same indicator in the United States is 56%.
The global average was 53%, up 10% from 2018. Among 11 countries, there is a predominant understanding that blockchain is very important for the development of the economy, the researchers note.
The head of the Asia-Pacific laboratory Deloitte and consulting partner at Deloitte Advisory Paul Sin noted in the report that China will implement blockchain not tactically, but strategically, and it is not yet equal in the rest of the world. The fact is that most projects in China are led by a government that uses blockchain as a strategic weapon, and not as a tool to improve productivity, Xing noted.
Since Chinese President Xi Jinping called blockchain a breakthrough technology, the authorities have sent almost $6 billion in public investment to this area. As of April 2019, China leads in the number of blockchain projects developed. The governments of several large cities have launched investment funds to support enterprises in the industry.[9]
2018: PwC predicts China to become a blockchain power
At the end of August 2018, the consulting company PwC published the results of a study of the blockchain technology market and their application. As part of the study, 600 leaders in 15 territories were asked if they use blockchain and what they see its potential in. According to a survey, PwC predicted China to turn into a blockchain power. Read more here.
Notes
- ↑ China makes up 84 per cent of blockchain applications worldwide, state official says, but only a fifth are approved
- ↑ , China will create 15 pilot zones for introducing blockchain into the economy.
- ↑ Chinese province applies blockchain in ‘smart prison’ system to cut corruption and abuse cases
- ↑ Blockchain Mentioned in China 5-Year Policy Plan
- ↑ 140 Government Services Applications Are Using Blockchain
- ↑ China national blockchain fund proposed
- ↑ Blockchain Now Officially Part of China’s Technology Strategy
- ↑ Fitch says China leading in blockchain for securitization
- ↑ Deloitte: China Looking to Use Blockchain as a 'Strategic Weapon'
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