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Chinese President Advises the Government to Use Blockchain and Artificial Intelligence for Epidemic Prevention

During a recent inspection in Zhejiang, Chinese President Xi Jinping emphasized the necessity for the various decisions and arrangements of the government to plan for prevention and control of the coronavirus outbreak and economic and social development work.

He pointed out the importance of the implementation of epidemic prevention and control as well as the resumption of production work to strive for the year’s economic and social development goals.

The coronavirus pandemic which was believed to have originated in Wuhan, in the Hubei province in December 2019. The spread of the virus has led to the lockdown of many cities, especially in the province of Hubei. Production has slowed down as many Chinese citizens have not been able to go to work.

The Chinese President also visited the city of Hangzhou to review demonstrations of digital governance and digital epidemic prevention. To be able to advance in the modernization of the national governance system and governance capacity, the Chinese President emphasized the requirement for deploying blockchain, artificial intelligence, cloud computing, and other disruptive technologies to promote innovation and smart cities.

Smart city infrastructure with blockchain

China has integrated an independently developed blockchain-based identification system for its cities into its smart city infrastructure. The new identification system was jointly launched by three institutes in the city of Shijiazhuang.

The blockchain-based system aims to improve the connectivity and data sharing between its developing smart cities. China’s smart city code system is based on node code, in line with international standards and will assign unique, global digital identification to cities. The foundation of the new system, which is based on blockchain, was developed within China.

Blockchain zone in China

The first provincial blockchain zone has been established in China, in the central Chinese province of Hunan. The “Wanbao” blockchain zone is located in the city of Loudi, marking the first blockchain zone in China, according to a local Chinese report.

The province currently plans to build three major blockchain zones, including blockchain industrial parks in Wanbao district in Loudi, and other zones in Jingkai and Gaoxing in the city of Changsha in the Hunan province.

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Buy Us Out: Majority of Chinese Blockchain Companies Don't Develop or Even Use Blockchain Technology

Blockchain companies have become a hot property in China over the years, and the rise in company registrations surged following Chinese Leader Xi Jinping announcement last October that the country must strive to become the global blockchain leader.

According to a report from China Finance, many larger businesses across China are blockchain companies in name only and in fact have little to do with the groundbreaking technology.

Chinese Blockchain Boom?

LongHash data reveals that of the 79,555 registered blockchain companies in China, only about 26,000 are operating and 57,000 have lost their license and legal status.

In the first quarter of 2020, as the Coronavirus disruption began to shut down factories, offices and cities in China, a further 2,383 brand-new blockchain companies emerged.

As the number of registrations soared following Xi Jinping’s announcement, Wu Zhen, Head of the Key Laboratory of Internet Financial Security Technology of the National Internet Emergency Center was interviewed about the growing statistics stating: “There are more than 32,000 blockchains […] However, we found that there are actually not many companies that have blockchain technology or chain ownership […] About 10%, or even less than 10%.”

It appears that many of the smaller Chinese registered “blockchain” companies and startups have been found to be shell corporations trying to capitalize on the buzz with the ultimate aim of many of these “blockchain” companies to be bought out or absorbed by a larger technology firm.

Xi Jinping Keeps Pushing Blockchain

During a recent inspection in Zhejiang, Chinese President Xi Jinping emphasized the necessity for the various decisions and arrangements of the government to plan for prevention and control of the Covid-19 outbreak and economic and social development work.

The Chinese Leader also visited the city of Hangzhou to review demonstrations of digital governance and digital epidemic prevention. To be able to advance in the modernization of the national governance system and governance capacity, the Chinese Leader emphasized the requirement for deploying blockchain, artificial intelligence, cloud computing, and other disruptive technologies to promote innovation and smart cities.

He pointed out the importance of the implementation for epidemic prevention and control as well as the resumption of production work to strive for the year’s economic and social development goals.

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China’s Central Bank Official Urges the Acceleration of Digitization of the Chinese Economy with Blockchain

China’s central bank, the People’s Bank of China (PBoC) Financial Technology Committee held its first meeting of the year this week, after months of delay due to the coronavirus pandemic.

Fan Yifei, the PBoC’s deputy governor echoed President Xi Jinping’s call for the acceleration of the country’s blockchain development adoption. The president pointed out that it is necessary to strengthen fundamental research of blockchain technology and enhance innovation, enabling China to take a leading position in the blockchain field.

The bank’s deputy governor met with the central bank’s officials as well as the heads of their affiliated financial institutions. Fan emphasized the importance of blockchain and financial technology (FinTech) industries and wanted to ensure China’s adoption plan would be laid out and implemented by 2021 to be in line with the deadline they have set out.

As Sina reported, the main takeaway from the meeting was said, “It’s necessary to strengthen the application of regulatory science and technology, actively use big data, artificial intelligence (AI), cloud computing, blockchain, and other technologies to strengthen the construction of digital supervision capabilities.”

New policies were also discussed along with an overview of scientific studies to encourage the development plan, as Fan further stressed the urgency for accelerating the digitization of the Chinese economy.

First-ever blockchain zone in China

China’s 2019 blockchain zone development report placed the city of Loudi at 17th among domestic blockchain zones. With a total of 788 blockchain enterprises established in Hunan, a few of the industry-leading enterprises include Shareslink, Hyperchain, Incite Data, and Shenzhen Defang Technology.

Blockchain and AI for cross-border financing

China is researching the application of blockchain technology and artificial intelligence in cross-border financing, with a focus on risk management.

Lu Lei, the deputy head of the State Administration of Foreign Exchange (SAFE) in China, said that there are plans to use blockchain and AI for cross-border financing after Facebook announced plans for its Libra stablecoin.

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China’s Tencent Will Invest 500 Billion Yuan in Blockchain and New Technology Infrastructure

Chinese tech giant Tencent Holdings, the owner of China’s messaging platform WeChat has announced that the company will be investing 500 billion yuan ($70 billion) in the next five years in emerging technologies including blockchain, artificial intelligence (AI), cloud computing, and cybersecurity.

Tencent is aiming to strengthen the development of FinTech in China, following the push of accelerating the development of blockchain as stated by the country’s President Xi Jinping.

The National Development and Reform Commission (NDRC) of China discussed the standards of its “new infrastructure” for technology which included the call for a structural upgrade of its economy.

Fan Yifei, the Chinese central bank (PBoC)’s deputy governor echoed President Xi Jinping’s call for the acceleration of the country’s blockchain development adoption. The president pointed out that it is necessary to strengthen fundamental research of blockchain technology and enhance innovation, enabling China to take a leading position in the blockchain field.

Key sectors of the investment include blockchain, servers, big data centers, supercomputer centers, internet of things operating systems, 5G networks, and quantum computing, according to Dowson Tong, senior vice president of Tencent.

Tencent executives to join China’s blockchain committee

The Chinese central government has put together a national blockchain committee to work on setting industrial standards. The Ministry of Industry and Information Technology (MIIT) issued a notice on April 13 of the “Public Notice on the Formation of a National Blockchain and Distributed Ledger Technology Standardization Technical Committee.”

Committee members include executives from well-known Chinese institutions, including Baidu, Tencent, Huawei, Peking University, Tsinghua University, Fudan University, amongst others. The ministry is also asking for public feedback on the committee members until the deadline of May 12, 2020.

China to develop a “digital central bank”

China’s central bank, People’s Bank of China (PBoC) is planning to look into building a digital central bank infrastructure to improve the standards of financial services in the country.

A three-year FinTech development plan was set out for the country in August 2019, and 2020 has entered its second year. The development of blockchain, the internet of things (IoT), big data, and other innovative business models will also be expected to drive the digital transformation of the financial industry and promoting financial technology in the country.

China has also taken an ambitious step to “maintain its leading position in digital currency technology,” as it remains the central bank’s current top focus. According to Zhongtai Securities, the People’s Bank of China expects to be in the world’s leading position in digital currency development, as it continues to strive for efficient research and development, as well as technical testing of digital assets.

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Chinese President Xi Jinping Highlights the Transformative Impact of Blockchain and AI on Global Industries

In a congratulatory message to the 2023 China International Intelligent Industry Expo, Chinese President Xi Jinping emphasized the profound changes that emerging technologies like the internet, big data, cloud computing, artificial intelligence (AI), and blockchain are bringing to global industries and lifestyles.

Accelerating Digital Transformation

According to a report from ChainCatcher, Xi Jinping’s message highlighted that these technologies are accelerating the digital, intelligent, and green transformation of industries. “The intelligent industry and digital economy are thriving, significantly altering the global allocation of resources, industrial development models, and people’s lifestyles,” Xi stated.

China’s Digital Economy Focus

China has been placing a high priority on the development of its digital economy. The country is actively promoting the deep integration of digital technologies with its real economy. This involves a collaborative push for digital industrialization and the digitalization of industries, aiming to build a “network powerhouse” and “Digital China.”

Global Implications

The remarks by Xi Jinping come at a time when the global landscape is increasingly influenced by digital technologies. With China being a significant player in the fields of AI and blockchain, the country’s focus on these technologies could have far-reaching implications for global markets and industrial practices.

Data-Driven Insights

As of 2021, China accounted for nearly 21% of the global digital economy, according to data from the China Academy of Information and Communications Technology (CAICT). The country’s investments in AI and blockchain technologies have also seen a steady increase, with a reported $12.4 billion invested in AI alone in 2020, as per data from the Ministry of Science and Technology.

Balanced Perspective

While the message from Xi Jinping is optimistic about the transformative power of new technologies, it is essential to consider the broader context. The acceleration of digital transformation also brings challenges such as data privacy concerns and the potential for increased inequality between those who can and cannot access these technologies.

This is not the first time President Xi has highlighted the importance of blockchain. On October 25, 2019, Xi Jinping stressed the need for China to accelerate blockchain development during a Politburo study session. He highlighted its applications in various sectors, from digital finance to supply chain management, and emphasized the importance of fundamental research and original innovation to position China as a leader in the field.

Conclusion

Xi Jinping’s message serves as a significant indicator of China’s strategic focus on digital technologies as a cornerstone for future development. As these technologies continue to evolve, they are set to play a crucial role in shaping the global economic and industrial landscape.