Blockchain Officially Included in China’s 50 Trillion “New Infrastructure“ Plan
Blockchain has officially been included in China’s “new infrastructure” together with other emerging technologies such as cloud computing, artificial intelligence (AI) and the internet of things (IoT).
According to the National Development and Reform Commission (NDRC), China’s top economic planning body, blockchain will form an integral part of the country’s data and technology infrastructure.
What is “new infrastructure”?
The term “new infrastructure” was put forward early in 2018 by the country’s top planners. As opposed to the traditional infrastructure construction such as railway, roads and airports, the new infrastructure focuses on new public facilities that serve the needs of new industrialization, including areas of 5G, ultra-high-voltage power facilities, inter-city transport, vehicle charging stations, big data centers, artificial intelligence and industrial internet.
At NDRC’s latest press conference on April 20, blockchain is the newly added high-tech sector into the new infrastructure.
What it means for blockchain?
“Instead of simply turning to the old playbook of investment stimulus, the country should promote a new round of infrastructure construction through reform and innovation,” said Ren Zeping, chief economist of Chinese property developer Evergrande.
China is looking to “new infrastructure” projects to offset the economic impact of the coronavirus outbreak and boost the country’s economy in the long term.
As of March 10, 25 provincial-level regions had announced a total of 49.6 trillion yuan (US$7 trillion) of investment in 22,000 new infrastructure projects, including 7.6 trillion yuan for this year, according to figures tallied by China Economic Weekly.
The capital market and investors have already shown their enthusiasm for these government-supported projects. In China’s A-share market, stocks related to 5G networks, industrial internet, inter-city transit systems, vehicle charging stations and data centers – all considered as new infrastructure – saw continued fund inflows, despite the current global financial crunch.
Blockchain-related stocks in the country have also seen big upward momentum after NDRC’s announcement.
“The test of DC/EP and now blockchain’s inclusion into the new infrastructure mark the country’s action in accelerating the blockchain adoption following president Xi’s laud for the technology last October…We believe blockchain could transform the world, and that only with the help of the state can this industry develop quickly.” Said Zhu Youping, blockchain expert and deputy director of the China Economic Information Network at the State Information Center.
As previously reported by 8btc, an NDRC subsidiary has been working on the national blockchain infrastructure called Blockchain Service Network (BSN), which would provide companies with access to the tools they need to develop blockchain-based applications. Having already launched for domestic commercial use, it will open for global companies on April 25.