Shanghai authorities form a blockchain alliance to improve trade finance operations

Government authorities in the Chinese city of Shanghai, along with China’s central bank and other banks, have formed a blockchain alliance to improve trade finance operations.

The Shanghai Municipal Commission of Commerce, Shanghai Customs, the People's Bank of China and the Bank of Communications, among others, are all members of the alliance, Global Times reported Thursday.

"This is the first blockchain application project in customs,” said Ye Jian, a general administration official at Shanghai Customs. “China upholds multilateral trade and constantly improves its business environment by seeking technological innovation.”

Several free trade zones in China already use blockchain technology to digitize trade, improve efficiency and reduce costs of operations, per the report.

Just yesterday, Hong Kong and mainland China also partnered on a blockchain project to improve their trade finance operations.

Blockchain adoption has been growing in China, especially after the country’s president, Xi Jinping, publicly supported the technology, saying that the nation should take the leading position in its development. China is also almost ready to launch its national digital currency after five years of research and development.