Blockchain Now Officially Part of China's Technology Strategy

An influential government official responsible for planning the Chinese economy has announced that blockchain will form an integral part of the country's data and technology infrastructure.

The National Development and Reform Commission (NDRC) told reporters that Blockchain will join other new technologies such as cloud computing, artificial intelligence (AI) and the Internet of Things (IoT) to support the systems it uses to manage the flow of information in China in the future.

The NDRC, which is actually the State Planning Commission, is a cabinet-level department that prepares policies and strategies for the direction of China's economy. It has a broad remit, covering everything from investment and public transport to running anti-monopoly probes and overseeing corporate debt issuance.

Wu Hao, director of high technology, said that the NDRC will work with relevant departments to review and publish relevant guidelines to support the development of new infrastructure, review and develop relevant access rules that help the sustainable and healthy development of emerging sectors.

It is difficult to know what Blockchain means for its future in China, because the NDRC has a complex relationship with the broader industry.

The NDRC subsidiary is working on a new ‘Blockchain Service Network (BSN)’ that will give companies access to the tools they need to develop blockchain-based applications. This network, which has been launched for local commercial use, will be opened to global companies next week.

However, last April, the NDRC presented the industries that the country wanted to ‘eliminate’ from China with a draft proposal, including the country's important Bitcoin mining sector. The organisation quietly removed Bitcoin mining from the list of undesirable industries weeks after Xi announced his thoughts on the great potential of blockchain in October.

In the past, the NDRC has issued guidance and supportive policies for industries vital to the government's economic strategy. In late 2018, it signed an agreement with the China Development Bank to provide 100 billion yuan ($14.1 billion) in financial support to companies working in emerging technology such as Artificial Intelligence (AI) and the Internet of Things (IoT).

It is not yet known whether the NDRC plans to provide similar support to companies working with blockchain. However, while support for technology is now rising to the highest level, blockchain firms seem to be facing a more moderate climate in a short time, as in countries such as South Korea.