Authorities in China are being urged to improve the infrastructure surrounding blockchain technology so that it can keep up with the pace of digitalization.
Dong Jin, a senior member of the National People’s Congress (NPC), called on the Chinese government to do its part in the development of blockchain, noting several benefits for the local economy.
Jin’s comments came during China’s Two Sessions event, an annual plenary session of the ruling party, attended by the country’s political elite and industry leaders. Discussions during the Two Sessions event will cover areas of economics, security and geopolitics, as well as emerging technologies.
Jin’s proposal centers on developing a national blockchain network to improve companies’ data-sharing capabilities. In addition to supporting private entities, he states that the blockchain network will serve government agencies to maintain clear lines of data sharing without the hassle of red tape.
The proposed national blockchain network will be indispensable in supply chain, finance, transportation, shipping and government services.
In recent years, China’s digital economy has grown in line with the long-term plans of the Chinese Communist Party (CCP), but several issues continue to plague China’s long-term prospects.
Jin points out that the growth of the digital economy has led to the creation of “high-quality data” by key players in the sector. Instead of a shared resource, Jin says the data is housed in “isolated islands” and “icebergs” due to cybersecurity risks and industry competition.
To improve interoperability, Jin advocates having a central blockchain system that can act as a “cornerstone of trust” for entities that want to share their data using the blockchain systems.
immutability and transparency properties.
Jin’s plans will start with China before rolling out the blockchain network globally to “achieve interconnection with countries”, especially in the areas of trade and finance. Currently, China and other BRICS countries are considering the prospects of a blockchain-based settlement system to reduce their dependence on the US dollar in international trade.
A national vision
China has previously launched a series of blockchain initiatives to standardize the use of the technology across the board and launch a blockchain center in mid-2023. The center, based in Beijing, aims to deepen the country’s talent pool by training 500,000 experts in the coming years.
“In the field of talent training, the center will train more than 500,000 high-quality blockchain talents for my country through collaboration with top universities, research institutes and industry leaders to adapt to the rapid development needs of new forms of digital economy such as Web 3.0,” Jin said in a 2023 statement.
Before the center’s official unveiling, Chinese authorities announced a nationwide public consultation to establish blockchain standards by the end of 2025, while
experimenting with blockchain-based digital identity systems.