China Approves Blockchain Trials by JD.com, Haier and SAIC-GM-Wuling
In a notification published earlier today, Chinese officials awarded their approval to 179 blockchain trials submitted by corporations and government institutions, including JD.com, Haier, and SAIC-GM-Wuling, as well as others. During a trial program, each of the organisations on the shortlist was granted the go-ahead to use blockchain solutions in a certain sector.
Among the big firms listed were Jingdong Technology Information Ltd., a sister company of e-commerce behemoth JD.com; Haier Refrigerator, an associate firm of Haier Group Corporation; as well as SAIC-GM-Wuling, the manufacturer of the mini Wuling Hongguang, which is one of the successful electric vehicle ventures in China. All of them were given the go-ahead to undertake clinical studies with the unique manufacturing method.
Neither Baidu, Alibaba, nor Tencent, the top trio technology giants dubbed as the “BATs,” nor ByteDance, which is the holding company of the popular video app TikTok, were on the list. China’s financial behemoth Ant Group formed a blockchain unit 2021, while the Chinese internet giants Alibaba and Tencent have all joined the non-fungible token market driven by blockchain technology as of late.
As per a policy statement allowing the trials, the initatives will be allocated to geographical regions and will continue through the end of 2023. The pilots’ goal is to provide “duplicable” case histories and expertise to aid in the development of China’s data networks. National authorities have approved the adoption of blockchain, a decentralized digital ledger, for the initial time at the country level, marking a historic milestone. Inclusion is almost certainly a nod of endorsement from the highest levels of government.
Power, education, healthcare, legal issues, intellectual property protection, commerce and finance, risk evaluation, the stock market, and trans-border finance are some of the other application domains mentioned in the report. It has been approved for tax offices in the provinces of Jiangsu and Jiangxi in the eastern part of the country to employ blockchain technology.
Sixth Tone’s queries concerning JD.com’s future intentions were not answered by the company. As part of a blockchain network, JD and Haier both run blockchains, which are referred to as JD Chain and Haier Chain, respectively. These blockchains are available for client-facing solutions like smart contracts and real – time product tracking.
Chinese developers have concentrated on “vital technological innovations of consortium blockchain,” according to Cai Liang, director of the Zhejiang Province Blockchain Technology Research Center, who spoke to the Beijing News in October. Blockchain technology is divided into three types: public, private, and alliance.
In contrast to public blockchain, which remains totally decentralized, a consortium blockchain is regulated by the people who created it. Though China is encouraging blockchain research, it has mainly prohibited the creation of cryptocurrencies, which are the most well-known use of the technology. Initial coin offerings (ICOs) were barred by regulators in 2017, and China’s central bank outlawed all trades in September, noting that it “jeopardizes the protection of people’s wealth.”
The letter issued on Wednesday included a caution against cryptocurrency activities as well as over-hyping innovation. China’s 17 highest-ranking regulatory authorities, including the National Cyberspace Administration and the People’s Bank of China, released a statement saying that companies and provinces should adhere to the principles of integrity and credence. “Hyping up digital currencies, crypto mining, and unlicensed fund-raising, laundering of funds, ponzi schemes, and media frenzy in the moniker of blockchain innovation” is explicitly forbidden.”
President Xi Jinping backed blockchain technology two years before, and since then, provincial and municipal governments have been competing to recruit blockchain enterprises. Earlier this year, Beijing revealed intentions to establish a blockchain centre, while the southern Chinese province of Hainan committed to use blockchain technology in domains such as housing, medical services, and hospitality.
Following the implementation of the Regulations on the Management of Blockchain Information Services in February 2019, organizations that provide blockchain services have been required to seek a permission from the Cyberspace Administration in order to ensure proper administration.