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Chi­na step­ping up the ap­pli­ca­tion of blockchain tech­nol­ogy to gov­er­nance and gov­ern­ment ser­vices

Bei­jing re­cently is­sued its “Three Year Blockchain De­vel­op­ment Ac­tion Plan” for the pe­riod from 2020 to 2022, join­ing the ranks of other lo­cal gov­ern­ments in China that have released sim­i­lar poli­cies in­clud­ing Hu­nan, Chang­sha, Guangzhou and Ningbo.

The move comes just fol­low­ing the re­lease of a re­search re­port on “Blockchain Dri­ving Chi­nese Smart Gov­ern­ment Ser­vices Growth to En­ter the Fast Lane” by the Smart City De­vel­op­ment Re­search Cen­tre of Chi­na’s State In­for­ma­tion Cen­tre (SIC).

The re­port points out that gov­ern­ment ser­vices in China are “at the fore­front glob­ally” in terms of on­line avail­abil­ity and ad­min­is­tra­tive data col­lec­tion, but that the full po­ten­tial of these re­sources has yet to be em­ployed due to is­sues in­clud­ing “data is­lands,” the frag­men­ta­tion of ad­min­is­tra­tive data and lack of con­nect­ing in­for­ma­tion in­fra­struc­ture.

Dan Zhiguang, chair of the Smart City De­vel­op­ment Re­search Cen­tre, said to Xin­hua that “blockchain tech­nol­ogy will cre­ate a pro­found change in tra­di­tional pro­duc­tive relationships, as well as pose new chal­lenges for the state ad­min­is­tra­tive sys­tem and ad­min­is­tra­tive ca­pa­bil­ity.

“The birth of blockchain tech­nol­ogy will make pos­si­ble new mod­els for gov­ern­ment admin­is­tra­tion in the era of the Dig­i­tal Econ­omy and the es­tab­lish­ment of a fully modernised ad­min­is­tra­tive sys­tem, as well as up­grades in mod­ern ad­min­is­tra­tive capabil­ity, help­ing the de­vel­op­ment of Chi­nese smart gov­er­nance to en­ter the fast lane.”

Ac­cord­ing to the SIC re­port Chi­na’s e-gov­ern­ment mar­ket first be­gan to see surg­ing growth in 2008, and has since main­tained an­nual ex­pan­sion of over 10%.

In 2018 Chi­na’s e-gov­ern­ment ser­vices mar­ket ex­ceeded 300 bil­lion yuan, while it is forecast to see an­nual growth of around 13% for the next five years.

Huobi China CEO Yuan Yum­ing said that blockchain tech­nol­ogy will per­mit the connection of “data is­lands” in gov­ern­ment af­fairs by means of dis­trib­uted ledger coordi­na­tion, per­sonal iden­tity ver­i­fi­ca­tion, trace­abil­ity and tam­per pre­ven­tion.

The tech­nol­ogy will also per­mit data track­ing, clar­i­fi­ca­tion of rights and re­spon­si­bil­i­ties, and full-life-cy­cle man­age­ment of gov­ern­ment data.

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