China to Adopt Blockchain Technology for National Data Infrastructure by 2029

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news…

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On January 6, Chinese authorities revealed plans to develop a comprehensive national data infrastructure, with blockchain technology positioned as a foundational element.

The initiative seeks to establish a unified national data market by 2029, streamlining data sharing and usage across the country.

While the plan holds promise, officials acknowledge that the initiative is still in its early stages.

Blockchain and Telecommunication Networks Drive China’s Initiative

According to China’s top economic planner, the National Development and Reform Commission (NDRC), the initiative will be executed in phases.

The first phase, spanning 2024 to 2026, focuses on refining the design and structure of the national data infrastructure.

In the subsequent phase, covering 2027 to 2028, the goal is to build a robust system capable of supporting large-scale data circulation and ensuring seamless interconnectivity.

This phase will also integrate data networks with computing power facilities, laying the foundation for a unified digital ecosystem across China.

Central to this vision is blockchain technology, which serves as the backbone for achieving secure and transparent data management.

The Chinese authorities plan to establish standardized frameworks for data assets and transaction certificates, leveraging blockchain technology, encryption, and smart contracts to enhance traceability and trustworthiness.

These measures align with China’s broader objectives for data security and management.

In addition to blockchain, the government is committed to upgrading the nation’s current 5G networks to 5G-Advanced (5G-A) standards.

These upgrades promise faster speeds, reduced latency, and broader connectivity.

With peak download speeds of 10 gigabits per second and upload speeds of 1 gigabit per second, the enhanced 5G-A network intends to address China’s growing data demands, creating a more resilient and energy-efficient infrastructure.

While China maintains a restrictive stance on cryptocurrencies, including a ban on crypto trading and Bitcoin mining, its focus remains on blockchain’s potential beyond tokens.

The adoption of blockchain technology for data infrastructure reflects the country’s intent to prioritize green energy and environmental sustainability in the coming years.

China’s Data Infrastructure Initiative Includes Focus on 6G Technology Research

China’s guidelines for the national data infrastructure also emphasize advancing research in 6G technology.

While still in its early stages worldwide, 6G promises to transform data transmission with faster speeds, greater reliability, and connectivity for more devices than ever before.

The country’s focus on data infrastructure is not new. Blockchain development became part of China’s national strategy in March 2021 through the “14th Five-Year Plan.”

This strategy outlined initiatives to strengthen the blockchain industry across 29 provinces and cities, demonstrating the government’s long-standing vision for integrating advanced technologies into its economy and governance.

Shanghai furthered this vision in July 2023 with an implementation plan to develop a blockchain-based digital infrastructure between 2023 and 2025.

This regional effort focuses on improving blockchain applications in economic and governance systems.

These initiatives directly support the national objective of establishing a unified data infrastructure by 2029, showcasing coordinated efforts across all levels of government.

The economic implications of this initiative are substantial.

Zhulin Shen, deputy director of the National Data Administration, recently stated that the plan could attract 400 billion yuan ($54.5 billion) in direct investment annually.

Over five years, this would amount to a total investment of 2 trillion yuan ($272.7 billion).

The initiative is likely to influence economic policies, business strategies, and consumer technology, reinforcing China’s role in the global digital economy.

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