China to leverage blockchain for national data infrastructure goals by 2029

Chinese authorities published a policy document to boost the development of a national data infrastructure, including implementing blockchain technology, as the country aims to complete such an infrastructure by 2029.

In a guidance released Monday, the National Development and Reform Commission — the country’s top economic planner — and two other authorities said that China’s data infrastructure development is still in its early stages. The government intends to build the infrastructure as part of its broader push for a unified national data market.

The Chinese government continues to ban cryptocurrency trading and mining, but it has long embraced other applications powered by permissioned blockchains that don't rely on tokens.

According to the guidance, a significant pillar of the data infrastructure would be centered around blockchain. For example, the country aims to establish a standardized structure for data assets and transaction certificates powered by blockchain, encryption technologies and smart contracts to “enhance traceability and trustworthiness,” the guidance said.

“Industries and local governments are encouraged to actively experiment with building new technological infrastructures, such as blockchain networks and privacy-protecting computing platforms,” the authorities said.

Zhulin Shen, deputy director of the National Data Administration, said in a press briefing on Monday that projects surrounding the development of such data infrastructure are expected to attract about 400 billion yuan ($54.5 billion) in direct investment annually, driving an investment total of about 2 trillion yuan ($272.7 billion) over the next five years.