The Chinese government has announced plans to use blockchain technology as the cornerstone of its national data infrastructure, which is targeted to be completed by 2029.
Blockchain as a Key Component
The initiative is part of the country's broader strategy to establish a unified national data market, according to a policy paper published by the National Development and Reform Commission (NDRC) and other authorities. Blockchain will play a key role in creating a standardized framework for data assets and transaction certificates using encryption technologies and smart contracts to increase traceability and reliability.
Investment in Data Infrastructure
Zhulin Shen, Deputy Director of the National Data Administration, said projects related to data infrastructure development are expected to attract 400 billion yuan ($54.5 billion) of direct investment annually. The total investment in the initiative is expected to reach 2 trillion yuan ($272.7 billion) in the next five years.
Limited Blockchain Use
The NDRC noted that China’s current data infrastructure is still in its infancy, but the government believes that establishing a robust and reliable data system is essential to support the country’s digital economy and technological leadership. While the use of blockchain in China is limited to permissioned systems and does not cover cryptocurrencies, this policy demonstrates Beijing’s commitment to embracing blockchain for applications such as data management, supply chain efficiency, and privacy-enhancing technologies.
These steps illustrate China’s commitment to blockchain technology despite a ban on cryptocurrencies, highlighting the country's ambitions for technological leadership.
