China’s push supports Web3 goals but centers power with the state; Concerns surrounding the digital yuan persist despite the momentum from tech giants and developers.
The Chinese Ministry of Science and Technology Yin Hejun did that announced through a written response to the proposal of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) that the Chinese government attaches great importance to the development of the Web3 industry.
He claimed:
“The proposals for strengthening support for research and development resources in Web3 technology, strengthening technology supervision and management, encouraging international cooperation and strengthening publicity and promotion are forward-looking and strategic and highly compatible with the key work of the ministry.”
The document recognizes China’s robust industrial base and the extensive development potential for Web3, which includes policy support, technical research and real-world applications. Official guidance on blockchain technology and blockchain innovation pilots exploring different use cases from trade finance to intellectual property are cited in the document.
Leading Chinese technology companies such as Ant Group, Baidu and Huawei demonstrate the consortium’s crucial role in this sector. Moreover, according to China, more than 50,000 developers are involved in the state-backed blockchain Chang’an Chain.
The Ministry of Science and Technology and other government agencies have introduced policies and standards to accelerate blockchain adoption. Local programs in Beijing and Shanghai are also aimed at cultivating Web3 innovation. Authorities are seizing the opportunities in this emerging area by providing a supportive environment through guidelines, committees and targeted initiatives.
China’s embrace of Web3 technologies marks a shift from its previous stance of banning cryptocurrencies and cracking down on mining activities. However, concerns remain about the Chinese Central Bank’s digital currency (CBDC), the digital yuan. Although the digital yuan is positioned as an advanced payment mechanism, it enables unprecedented surveillance and control by authorities.