{"id":23936,"date":"2017-05-01T14:48:16","date_gmt":"2017-05-01T14:48:16","guid":{"rendered":"http:\/\/ci027cfe7b401026c3"},"modified":"2017-05-01T14:48:16","modified_gmt":"2017-05-01T14:48:16","slug":"chinas-blockchain-invasion","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/chinas-blockchain-invasion","title":{"rendered":"China\u2019s Blockchain Invasion"},"content":{"rendered":"
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Word in China is out about blockchain technology, as the government made clear in an Informatization Strategy<\/a> published in December of 2016. The strategy states, \u201cThe internet, cloud computing, large data, artificial intelligence, machine learning, blockchain \u2026 will drive the evolution of everything \u2014 digital, network and intelligent services will be everywhere.\u201d<\/p>\n

It was an official endorsement for the new digital age and a big boost for blockchain technology. <\/p>\n

In a country with $5.5 trillion in digital payments last year (50 times that of the U.S.), “blockchain” is now a buzzword among the titans of industry. And in the race to participate, Chinese banks, builders, suppliers and retailers are pumping out blockchain solutions.<\/p>\n

Survival of the Fittest<\/strong><\/p>\n

Even with millions of dollars, many of these new blockchains may not make it very far. In a recent WeChat post, Antshares executive Erik Zhang stated that 90 percent of the enterprise blockchains we are seeing are doomed to fail. Without an open-source code that anyone can build upon, Zhang argues, private solutions will not see the network effect of a healthy ledger.<\/p>\n

The big question for China, however, is whether a country known for its centralized authority, and a penchant for all things made-in-China, will allow an open-source, global standard solution to sit on its internet. With Bitcoin, Ethereum and Hyperledger vying for dominance, there are big names within China making moves into the space.<\/p>\n

A few of these big names include:<\/p>\n

The People\u2019s Bank of China (PBOC)<\/strong> \u2014 The PBOC is reportedly close to the release of a government-backed digital RMB currency, which would put China at the frontier of digital currency adoption. And there are whispers within China that Shenzhen will be ground zero for the new digital economy. <\/p>\n

In September, Bloomberg reported<\/a> that PBOC Vice Governor Fan Yifei wrote: \u201c[T]he conditions are ripe for digital currencies, which can reduce operating costs, increase efficiency and enable a wide range of new applications.\u201d <\/p>\n

This would pave the way for blockchain startups in China to move forward in digital banking, finance, record-keeping, supply chains, IoT, AI and more.<\/p>\n

Wanxiang Blockchain Labs<\/strong> \u2014 Working with Ethereum, Wanxiang is the largest blockchain development backer in China. After purchasing 500,000 ETH tokens last year, it pledged $30 billion for the development of a smart city in Hangzhou. It offers open-source platforms for anyone to build upon, and launched an accelerator fund for developers, intending to put money into promising projects and integrate digital apps into China\u2019s 21st-century cities.<\/p>\n

At a recent fintech summit in Hangzhou, Dr. Xiao Feng, GM of Wanxiang Blockchain Labs, said, \u201cThe first generation of internet technology has brought great changes to society. In China great companies like Alibaba, Tencent and Ant Financial have emerged. The blockchain represents the second generation of the internet,\u201d adding that big changes will come with artificial intelligence, encryption, decentralization, finance and the transfer of value.<\/p>\n

Wanda Group<\/strong> \u2014 Wanda Group is the world\u2019s largest private property developer, with its own hotels, theme parks, shopping malls, AMC theaters, media companies and department stores. <\/p>\n

In 2016 Wanda joined Hyperledger, intending to build smart apps for its businesses. Five months later, Wanda announced its blockchain platform Polaris<\/a> for smart supply chains, pharmaceutical management, finance and invoicing. Now the company is working with China\u2019s Ministry of Industry and Information to draft domestic blockchain standards and a Chinese blockchain white paper.<\/p>\n

And Wanda insists Polaris will be an open-source blockchain for all. When announcing Polaris at the Shanghai Hyperledger Hackathon in March, Ji Zhoudong, GM of Wanda Feifan Technology Research Center, said, \u201cWanda attaches great importance to being open source, the core of which is to foster progress through community, openness, collaboration and sharing.\u201d<\/p>\n

Alibaba<\/strong> \u2014 Alibaba took a small step onto the blockchain in March, when it teamed up with PwC to build a pilot platform to prevent counterfeit foods. Food fraud is a big issue in China, as are fraudulent goods across Alibaba\u2019s many online platforms. If the pilot is successful, blockchain tracking may be applied to all goods on Alibaba\u2019s supply chain.<\/p>\n

Alibaba\u2019s financial arm, Ant Financial, is also embracing blockchain technology, as CEO Eric Jing recently told<\/a>CNBC<\/a>. According to Jing, \u201c[T]hese technologies will be used \u2026 to bring more, a high level of security,\u201d also saying that in the future, artificial intelligence and blockchain will be \u201cdeeply\u201d integrated into Ant Financial\u2019s business.<\/p>\n

ICBC<\/strong> \u2014 The largest and most valuable bank in the world, ICBC is adapting quickly to the fintech revolution. Speaking at a conference in March 2017, ICBC\u2019s Huiman Yi said, \u201cWe place great importance on the research of advanced technology and the cultivation of technical talents. We have established seven innovation labs in ICBC\u2019s head office for artificial intelligence, cloud computing, blockchain, bioidentification, big data and internet finance.\u201d And according to Yi, a blockchain-based financial trading system is coming to the public soon.<\/p>\n

Other Chinese companies making moves onto the blockchain include:<\/p>\n