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How China's Local Governments and Academia Propel Blockchain Business - Août 2018
How China's Local Governments and Academia Propel Blockchain Business - Août 2018
TechTank
中文
Editor's Note:
This is the second of two posts about blockchain development in China. You can read the first post about
startup businesses and the response from the national government here.
T
he absence of a national standard of regulation allows local governments in
China to step into the blockchain business. Major cities in China are now
competing for supremacy by creating an ecosystem of blockchain. According to
statistics by Jingdata, Beijing and Shanghai host the highest shares of Chinese
blockchain companies, with 36 percent and 20 percent respectively, followed by
Shenzhen and Hangzhou. Several other major cities across China have started their
blockchain-related investments funds: in July 2018, Nanjing announced an ambitious
$1.5 billion investment fund to promote blockchain projects and encourage startup
companies to move to the city.
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Hangzhou
The government of Hangzhou has played a pioneering role in promoting blockchain
technology by addressing its importance in a 2018 government report. Zhejiang Daily,
the of cial newspaper of Zhejiang province, reports that Hangzhou is determined to
become the No.1 city globally for blockchain-backed business. The home of Alibaba,
Hangzhou established China’s rst blockchain-centered Industry Park in April 2018.
The government of Yuhang District, a suburb of Hangzhou, and a local venture capital
rm jointly set up a fund valued at RMB 10 billion (USD $1.6 billion) to nance
blockchain startups. So far, Industry Park has successfully contracted with ten
blockchain-related projects. One startup, Jixin Blockchain, is developing a more user-
friendly wallet application to help customers protect their digital currencies from theft
and loss. By doing so, they aim to make digital wallets more accessible to the public.
Shenzhen
Academia
China’s leading universities are devoting resources to develop blockchain-related
technologies and talents. Their efforts demonstrate the growing interest from China’s
academic institutions in the area of blockchain. In 2016, Tsinghua University, together
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with IBM and Walmart, announced that they are using blockchain technology to
improve the way food is tracked, transported, and sold to consumers across China. Now,
Tsinghua is one of the eight Chinese universities that offer blockchain-related classes.
A Bright Future
China has not only actively developed blockchain-based business domestically, but also
gradually increased its global engagement. China, together with the U.S., U.K., Canada,
Germany and 17 observing countries, is participating in International Technical
Committee for Blockchain Standards, called ISO’s TC 307 committee, in order to
produce a range of deliverables such as standards. To enhance global engagement, the
government-backed Investment Association of China announced plans in March to
create a blockchain investment development center for linking domestic and
international resources, attracting foreign investment, and leading international
blockchain forums.
In addition to participation in agenda setting, China tops other countries and leads
blockchain patent applications in 2017, according to data from the World Intellectual
Property Organization. China nearly quadrupled its number of such lings in 2016.
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Although a patent doesn’t necessarily lead to viable product or use case, it provides the
owner an advantage and sets barriers for latecomers.
China’s interest and investments in blockchain are signi cant. Due to the organic,
bottom-up, nature of these efforts, China has not yet leveraged synergies that come
from coordinated efforts and scale. In our estimate, those days are quickly approaching,
and China is poised to retain a leadership position in this space for some time.
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