China’s top leadership has called for the construction of a national blockchain network alongside a nationwide integrated computing-power network, as part of efforts to strengthen technological innovation and upgrade the country’s industrial base.

The measures are set out in opinions issued by the Communist Party Central Committee and the State Council, China’s cabinet, on developing new productive forces — a policy concept centered on innovation- and technology-driven industrial upgrading. The document was published by Xinhua on Oct. 9 and is available through the Chinese government. The opinions set broad policy direction; technical standards, deployment timelines, and funding arrangements for the networks were not detailed in the published text.

The policy aims to accelerate the digital transformation of manufacturing, expand the use of artificial intelligence across industries and improve infrastructure supporting the digital economy. On computing infrastructure, the plan follows China’s most prominent national initiative to date, the “Eastern Data, Western Computing” project launched in 2022 to route computing demand from eastern tech hubs to data centers in western regions.

It identifies quantum technology, biomanufacturing, hydrogen energy, nuclear fusion, brain-computer interfaces, embodied intelligence and sixth-generation mobile communications as future industries for development. Robotics, biomedicine, new energy and aerospace are also included among the sectors targeted for advancement.

The framework calls for greater investment in core technologies and basic research, stronger corporate participation in national innovation projects, tax incentives for research and development, and improved financing for technology companies.

Other measures include developing green and low-carbon industries, expanding renewable energy and carbon trading, strengthening intellectual property protection, and reforming education and vocational training to meet technological and industrial needs.

The document also encourages international research partnerships. At the same time, it directs local authorities to avoid blind investment, industrial bubbles and excessive competition that could undermine sustainable development.

China continues to develop blockchain technology while maintaining strict restrictions on cryptocurrency trading and related business activities. Authorities classified those activities as illegal financial activities in September 2021. Earlier this year, regulators reaffirmed the policy and extended the framework to areas including yuan-pegged stablecoins and real-world asset tokenization, according to Reuters. The national network call reflects that split: blockchain is being developed as state-led infrastructure, while cryptocurrency trading and related businesses remain barred.

Source: CryptoBriefing