China’s Five-Year Plan Confirms Blockchain Technology Commitment

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China’s focus on expanding research into digital technology and assets has been specifically outlined in their recent five-year plan.

The pledge made by China outlines their intention to innovate and remain competitive in blockchain technology, made clear this week with the publication of China’s current five-year economic plan. Reports suggest that “blockchain” was recorded for the first time in the five-year plan announced by China, the publication outlined the economic objectives for the years 2021 – 2025, as reported by news outlet Pingwest.

China’s commitment to adoption of new technologies in recent years has been evident. Plans are in place for the development of the central banks’ digital currency, as well as biometric hardware wallets for their national cryptocurrency, the Digital Yuan.

There continues to be worrying signs with open-source decentralised cryptoassets based in Chinese states, as displayed clearly with the declaration of governments crackdown on crypto exchanges and introductory coin offerings (ICO).

With the recent introduction of Digital Yuan transactions widespread among China’s Shanghai markets, whilst also introducing Digital Yuan ATM’s in the Shenzen, prove China’s commitment to achieving a targeted adoption for the technology among 65% of its population, within the next five years.

China in pursuit of their target have collaborated with business companies as displayed recently with China Merchants Port. Its largest port operator partnered with Alibaba to implement blockchain technologies within the port industry.

Criticisms of the five-year plan have been noted, lack of vision in economic progression on a global scale and soft policy regarding debt reduction. US President Joe Biden’s recent $1.9 trillion sign-off for COVID-19 stimulus relief, China conversely has announced a commitment of $140 billion for the same issue.

Technology expenditure is likely to add higher returns to China’s GDP in the coming years, with research & design expenditure expected to rise by 7% annually by the end of 2025.