China is planning a national blockchain network as part of a broader initiative to integrate its digital economy with real-world production. This development, outlined in a policy document issued by the Communist Party of China Central Committee and the State Council on October 9, also calls for an integrated computing power network.
The policy emphasizes the development of technology-led industries and includes 19 measures to foster this growth. A key component is the creation of a national blockchain network, which will be situated within a section focused on connecting the real and digital economies. This initiative aims to upgrade manufacturing and establish national data infrastructure.
Authorities are directed to improve regulations concerning data ownership, trading, rights allocation, and the protection of participant interests. The document also proposes pilot projects treating data as an economic resource and enhancing the construction and operation of national data infrastructure. This plan for a national blockchain network is alongside advancements in smart manufacturing and industrial internet projects.
The policy advocates for support for businesses adopting digital technologies and for companies providing digital products and services. It also aims to foster internationally competitive digital industry clusters by adjusting the policy framework. Mechanisms to increase investment in future industries and share investment risks are also proposed.
The initiative includes provisions for financing future industries, encouraging sustained private capital investment in technology development, and utilizing existing fiscal policies. Earlier policies have already addressed blockchain’s role in business finance. On April 6, reports indicated that Chinese tax and financial regulatory bodies encouraged blockchain-based tax data sharing to aid bank lending for small businesses.
This move aims to standardize information sharing among banks, tax authorities, and businesses, assisting lenders in assessing borrowers. The agencies also recommended improvements to credit models and loan approval processes, with financing directed toward compliant, tax-paying enterprises. The push for crypto rules while presale tokens offer live products draws early capital.
Beyond domestic infrastructure, the new policy calls for an open, shared, and secure market for data. It includes exploring mechanisms for efficient cross-border data movement and addressing changes in ownership, transactions, and the protection of economic interests. Regional authorities have also proposed changes to cross-border digital finance, with Guangdong’s Department of Commerce including cross-border digital yuan trials in its 2026-2030 free trade zone development plan.
These proposed measures cover additional digital yuan uses, offshore finance, green finance, and financial technology trials. The draft also supports cross-border supply chain finance and lending secured by intellectual property. For financial institutions in the zone, the Guangdong proposal includes trials for cross-border credit asset transfers and multi-currency accounts.
In payment infrastructure, recent reports show that ICBC’s Shanghai and Singapore branches settled nearly 10 million yuan in import shipping fees using the upgraded Digital Currency Express platform, with the recipient receiving the payment on the same day.
The digital yuan network has expanded its banking participation, with the People’s Bank of China announcing on August 17 the approval of eight additional operators, bringing the total to 30. This expansion is linked to the 2026-2030 national planning period, with the aim of improving access to secure and convenient digital yuan services. Verified digital yuan wallets can now earn interest, and qualifying balances are protected under China’s deposit insurance system.
For cryptocurrency businesses, China has implemented restrictions. A February notice extended oversight to stablecoins and tokenized assets, requiring authorization for issuing offshore renminbi-pegged stablecoins. The agencies also maintained restrictions on virtual currency businesses and mining operations, including those disguised as data centers.
Meanwhile, the U.S. Justice Department’s Data Security Program establishes prohibitions and restrictions on certain transactions that grant countries of concern or covered persons access to sensitive American data. China, including Hong Kong and Macau, is designated a country of concern under these rules, which took effect in April 2025, with due diligence and reporting requirements beginning in October 2025.
