China is probably the first country in the world in regards to the number of blockchain projects being developed currently, China.org.cn reported on April 2.
China.org.cn, in an article “Nation leads world in blockchain projects,” pointed out that despite the weakened cryptocurrency market, various industries are involved in blockchain projects to serve the real economy. With 263 blockchain projects in progress, accounting for 25 percent of blockchain projects globally, China has become the leader in blockchain innovation, spanning various industries from financial and public services, to healthcare, supply chains, smart manufacturing and logistics.
Li Qilei, chief technology officer at Chinese blockchain platform developer Qulian Technology, said that blockchain was mainly used in China by the financial industry, particularly in asset securitization for banks and brokers.
China: the centre of decentralized technology
Chief editor at Blockdata Zhang Feixue told China.orf.cn that blockchain could benefit the real economy: "The main strength of blockchain is in decentralized data management. It can serve the real economy in terms of circulation and distribution. In the field of industrial economy, blockchain allows various assets to flow in the digital world, so it is a real gateway to digitalization for industries."
Paul Sin, leader of the Asia Pacific Blockchain Lab at Deloitte, said: "Whenever there is a need to synchronize data, especially sensitive information, across companies, industries and geographical boundaries, blockchain can offer a great solution due to its cryptographical protection of data."
According to Deloitte’s 2018 global blockchain survey, almost 50 percent of respondents in China said that blockchain was already implemented in their organization, compared to 14 percent in the US.
In regards to blockchain patents, China was also in the lead. The article pointed out that in 2018 “the World Intellectual Property Organization reported that most blockchain-related patent filings came from China. Data collected by Thomson Reuters from the international patent organization showed that over half of the 406 patents in 2017 were from China: the country filed 225 Blockchain patents, followed by the U.S. (91), and Australia (13).”
Largest Chinese shipping conglomerate to use blockchain for its supply chain
The China Shipbuilding Industry Company Limited (CSICL) which is one the largest shipbuilding conglomerates in China, will be cooperating with Shanghai Bank to implement supply chain services. The joint venture will develop “a blockchain-based China Ship-Shangyin online supply chain financial platform for CSIC’s upstream suppliers.”
The Shanghai Bank’s agreement with CSIC is part of the bank’s innovative use of technology as it has already launched in 2018 “an online supply chain financial service platform called Uplink e-Chain, which services a variety of small and medium-sized enterprises.”
The move demonstrates that apart from the finance industry, blockchain technology appears to be ideal for the supply chain management industry. When it comes to the management of data, blockchain can support the collection, tracking, aggregation, dissemination and integrity of all information.
Already, there are signs for innovation in other sectors. Blockchain technology is planned to be used by local authorities in Jiangsu Province to improve local transport infrastructure, as the “Implementation Plan for the Promotion of Transportation Infrastructure Development” has revealed.
China first, America second?
China leads the market for blockchain innovation projects, racing ahead of the US. As the Washington Post reported last month, China is way ahead on blockchain, as the US lacks a strategy for blockchain. With the Chinese government investing billions in blockchain partnerships with Chinese firms and implementing blockchain on the local government level, it is no surprise that the country is way ahead. As the article argues, it is not too late for the US, since the Chamber of Digital Commerce has issued a National action Plan for Blockchain.