How Will China Pursue Xi Jinping's Blockchain Adoption Plan?

"Who still remember the days when posts promoting blockchain getting deleted real fast?" tweeted local blockchain and cryptocurrency news outlet cnLedger on Oct. 28.

A week ago, during a meeting with Communist Party of China officials, President Xi urged the country's ministries and companies to allocate even more resources to the study of blockchain technology.

"The pilot zone will commit to attracting blockchain talent around the world and exploring the application of blockchain in areas such as cross-border trade, inclusive finance and credit rating."

Overall, research across Chinese universities in blockchain is at a prolific level, according to professor Olinga Taeed, council member and expert advisor at China E-Commerce Blockchain Committee.

According to the China Electronic Information Industry Development report, the number of blockchain patents filed in the country reached 3,547 in the first half of 2019, exceeding the total number of patents for the full year of 2018.One of these companies, FUZAMEI Technology, told Cointelegraph it has applied for more than 300 blockchain patents, 295 of which have been published, and eight have been authorized.

Baidu, the Chinese online search giant, has also made its appearance by patenting its own "Super Chain" blockchain for developing the fundamental infrastructure for the provision of blockchain services.

In another city, Hangzhou, the internet court uses blockchain to combat plagiarism, and the country's Supreme Court has even recognized the legal force of evidence based on blockchain.

"The technology has been in use to varying degrees in Mainland China for the last few years. We have seen the big TechFins/Tech giants using blockchain for payments, like Alipay for remittance, as well as for their operations. In some instances, blockchain has been used by tax bureau to issue tax invoices in Shenzhen."

Speaking about the role of financial entities involved in China's blockchain adoption plan, many experts referred to the country's national cryptocurrency planned for issue by the People's Bank of China as part of its Digital Currency Electronic Payment system intended for use in the near future.

As for a key region where the blockchain is likely to flourish, Meng named Shenzhen, explaining that China's government is seeking to turn the city into a "Hub of innovation, entrepreneurship, and creativity with international influence. It also fosters plenty of leading tech and fintech giants such as Ping An Group, China Merchants Bank, WeBank, Tencent and Huawei," the analyst added.