China has announced plans for a national blockchain network as part of a comprehensive digital economy strategy. According to the policy document published by Xinhua News Agency on October 9, the Communist Party of China Central Committee and State Council issued an opinion covering 19 measures to develop technology-led industries and connect the digital economy with real-world production. The document places the national blockchain network within a section on connecting the real economy and the digital economy, alongside manufacturing upgrades and national data infrastructure development. The policy package also targets national computing infrastructure, manufacturing digitization and stronger support for digital-industry clusters. The plan seeks to establish a nationwide integrated computing-power network alongside the blockchain infrastructure, with the broader objective to deepen the integration of China's physical and digital economies.
The policy announcement has triggered significant market reactions, particularly benefiting China-linked blockchain projects. According to IBTimes, Conflux (CFX) climbed from Saturday morning and reached highs above $0.07 on Sunday, with the token trading near $0.066 at 8:00 a.m. EDT on October 11, representing a more than 26% increase above Saturday's close. The rally was driven by investor interest in China-linked blockchain projects, with CFX being widely viewed as China's only regulatory-compliant public blockchain due to its work with state-backed corporations and professional ties to state-run Tsinghua University. However, as reported by IBTimes, the policy document does not name Conflux as the operator of the proposed network, nor does it specify that CFX will be used as its token, with the rally pricing an association and possible future benefit rather than confirmed integration.
The policy document proposes significant changes to data ownership rules and market mechanisms. As reported by Xinhua News Agency, authorities should improve rules governing who owns data, how it is traded, how rights are allocated, and how participants' interests are protected. The policy calls for pilot projects involving data as an economic resource, while directing improvements to the construction and operation of national data infrastructure. The document also proposes data-market trials, cross-border data mechanisms and support for long-term technology investment. The policy package includes projects covering smart manufacturing, industrial internet development and the transfer of computing resources from eastern regions to western regions.
Chinese banks have already received guidance encouraging blockchain use in key financial processes. According to reports from crypto.news, the State Administration of Taxation and the National Financial Regulatory Administration encouraged blockchain-based tax data sharing as part of changes to bank lending for small businesses on April 6. The agencies' notice recommended standardized information sharing between banks, tax authorities and businesses to help lenders assess borrowers and improve credit models and loan approval processes, with financing directed toward compliant, tax-paying enterprises.
The digital yuan network has expanded significantly with 30 approved banking operators following recent approvals. As reported by the People's Bank of China on August 17, the central bank approved eight additional banking operators, raising the network from 22 to 30 institutions. The approved banks include Ping An Bank, Hengfeng Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha and Guangxi Beibu Gulf Bank. China's blockchain plan explicitly excludes cryptocurrencies like Bitcoin from its framework, with the plan not allowing independent cryptocurrencies such as Bitcoin, and the new document not specifying whether the national network will build on China's existing Blockchain-based Service Network (BSN), which was launched in April 2020. Crypto trading remains illegal in mainland China, with the People's Bank of China and seven other agencies restating this ban in February.
The policy document, titled 'Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces,' makes no mention of Bitcoin or other independent cryptocurrencies, focusing instead on practical blockchain applications. As reported by IBTimes, Beijing's support for blockchain as infrastructure may create opportunities in enterprise and government systems, but it does not amount to permission for mainland residents to trade private cryptocurrencies. The policy also cautions against prioritizing virtual activity over the real economy or creating bubbles, signaling that the stated objective is practical integration with manufacturing and other economic activity rather than unrestricted token speculation. The near-term challenge will be whether markets continue assigning value to China-linked blockchain positioning after the initial headline reaction, while policy details remain unspecified regarding implementation standards, governance, or participating networks.
