Shanghai Enters Blockchain Alliance as China Urges Industry Transformation

Blockchain Alliance With Local Authorities

The local Shanghai government has partnered up with financial institutions in Shanghai’s E-port area to boost the use of blockchain for global trade. At the China International Import Expo on November 7th, the Shanghai Municipal Commission of Commerce, Shanghai Customs, and representatives of 6 bank branches in the city — including the People’s Bank of China and Bank of Communications — have collectively signed an E-port blockchain alliance. According to the announcement, this new alliance aims to make use of blockchain technology to help the city streamline processes related to international trade. Only two weeks ago, as reported by BeInCrypto, Chinese President Xi has publicly taken a strong stance on the importance of blockchain technology and urged the country to take the leading role in the industry. Ye Jian – an official from the General Administration of Customs of Shanghai – noted that the alliance is a direct consequence of China’s intent to optimize its business environment with the help of the emergent technology.

“This is the first blockchain application project in customs and the first service project for the CIIE. China upholds multilateral trade and constantly improves its business environment by seeking technological innovation,” said Ye.

China Moves Forward with Blockchain Transformation

Shen Weihua, deputy director of the Shanghai Municipal Commission of Commerce, explained that blockchain technology has already been applied to several business areas that are involved in Shanghai’s international trade, which include digital insurance, supply chain, and intelligent manufacturing. He further added that blockchain technology has been successfully implemented in the newly launched cross-border Yuan trade financing services for Shanghai’s single window system. According to him, the city’s “single window” service platform integrates to date 10 major functions, with 22 departments covering all regulations and major procedures in international trade. Qi Hong, vice director of China Construction Bank’s Shanghai branch, emphasized that while the technology remains in its early experimental phase, the government’s endorsement will bring the technology’s implementation closer to reality:

“We now use blockchain in sporadic financial products instead of the whole finance industry chain, and the public doesn’t have a sound understanding of the technology when it comes to financing. But I think the government’s call for blockchain construction will help push the technology’s application in a more comprehensive way.”

Following President’s Xi Jinping speech, Chinese authorities have already taken decisive action, confirming the country’s intent. After revealing the People’s Bank of China’s work on the first official digital currency, the government also showed a sign of endorsement for the mining industry, as BeInCrypto has also previously touched on. Several from the crypto industry speculated that it was the Chinese President’s speech that triggered the spike in the price of Bitcoin (BTC).

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