China is making rapid progress on blockchain

In many countries, companies are slowly beginning to explore the potential of blockchain technology in pilot projects. In China, the clocks tick differently because the technology has national priority. Corporations and government agencies are implementing the technology and driving adaptation. It also shows that no other country relies on the development and implementation of new technology to a comparable extent.

 

China is the driving force in the blockchain sector

In a December 5, 2019 analysis, Forkast Insight analysts looked at the current development of blockchain technology in China. Chinese President Xi Jinping’s testimony already shows that the country is focusing on the development of key technology. On October 24, 2019, Jinping made it clear to a CPC committee that blockchain was highly relevant to the country’s economic success. Numerous Chinese companies are already using the potential of distributed ledger technologies.

The report also clarifies that blockchain is a rapidly growing technology that already has portable use cases. Accordingly, the country has already passed the pilot phase and is ready for the productive use of the technology.

The detailed analysis takes into account the expertise of insiders, academics and company directors and sheds light on how the People’s Republic is dealing with this new technology.

 

Current advances manifest competitive advantages

The report also clarifies the differences in the implementation of DLT compared to other countries. In particular, the use of distributed ledger technologies in the corporate environment and from the perspective of the end user show that the country has a leading role. Rather, it gives the impression that China is already the driving force in this sector.

Basically, the country is known for its conservative stance on digital currencies. Nonetheless, the People’s Bank of China is about to introduce a digital token. A digital yen is said to help China become more relevant in the international financial markets and attack the leading role of the US dollar.

In addition, different forecasts make it clear that the blockchain market in China could grow by around 65.7 percent per year by 2023. The technology is expected to reach an annual volume of more than $ 2 billion by 2023.

 

China with big leaps in the blockchain sector

Xi Jinping also supports this growth through the national focus. Accordingly, the country is already outperforming the United States in this area. Xi Jinping has also identified various use cases. These include the healthcare sector, lending, security, charity and food security.

Overall, it can be seen that the adaptation of the blockchain in the People’s Republic is making solid progress. The government’s focus in particular ensures that it is highly relevant in the digital economy. The numerous announcements by the governments also show that a far-reaching implementation of the technology in the country is well within the scope of the possibilities. Various reports recently made it clear that the Chinese military is considering introducing the technology. The technology should support the workforce and enable easy management of personal data.

 

Rapidly increasing demand for blockchain developers in China

The report also illustrates the precarious situation on the Chinese labor market. On the one hand, the country is a hub for technology. On the other hand, however, it shows that there are too few specialists in this field. Especially the comparison with other countries shows that the country currently only has around 5,300 blockchain developers.

One of the main reasons for this disadvantage is the country’s underdeveloped IT sector. A developer study by the e-commerce giant Alibaba from 2017 shows that 56.7 percent of developers have only 0-3 years of experience in the field of software development. In international comparison, this is a clear competitive disadvantage for the People’s Republic.

 

Conclusion: China is the new blockchain country

In the past, Chinese companies were known primarily for their lack of creativity. Product imitations in particular were among the key products of the local businesses. However, the country and its government want to break this circle and focus on blockchain as a key technology.

Different evaluations make it clear that the country is already taking the first measures to ensure the productive operation of the advanced developments. A disadvantage compared to international competition is the low staff density. While international developers shine with a lot of experience, China’s programmers are considered rather inexperienced. Nevertheless, the developments with this handicap are significant.

Personally, I see fierce competition between the United States and China in this area. However, China is assuming the leading role here due to government support. This is how the country leads when filing new patents. In addition, more than 260 blockchain projects were launched this year alone. Once the digital yen is tradable, the country could turn its leading position into financial benefits.