Shanghai Government Collaborates with 6 Banks to Establish Blockchain Trade Alliance

The Shanghai government has partnered with financial institutions to establish an alliance to promote the use of blockchain in global trade.

As early as September this year, a new team called the Shanghai Blockchain Industry Development Research Alliance has been dedicated to promoting blockchain technology in Shanghai, aiming to transform Shanghai into a hub for technology. According to the organization's press release, members include the Shanghai Development and Reform Institute, Wanxiang Blockchain Lab, and BitSE, a member of Hyperledger.

At the time, BitSE's CEO Qian mentioned that the Shanghai municipal government hopes to draw attention and support innovative blockchain applications.

Fast forward to today, according to a report by Global Times on 11/7, at the China International Import Expo earlier on 11/7, representatives from the Shanghai Business Commission, Shanghai Customs, and six bank branches including the People's Bank of China and Bank of Communications signed a proposal for a blockchain alliance. This formally establishes the so-called Shanghai Electronic Port.

Blockchain for Multilateral Trade

Professor Chen Huifang from the School of Science and Electronic Engineering at Zhejiang University mentioned in the Global Times that blockchain had previously been implemented in several free trade zones in China, stating:

Blockchain technology enhances the reliability of information, thereby improving customs clearance efficiency, reducing costs, and promoting trade facilitation.

Shanghai Customs Commissioner Ye Jian emphasized that this blockchain alliance represents the first blockchain application project within customs and the first service project of the China International Import Expo. He added:

Blockchain has been successfully implemented in the cross-border RMB trade financing service launched by the Shanghai Single Window system, helping to address data imbalances in the process.

Moreover, in October this year, a blockchain system was also tested for cross-border financial services in Nanning, Guangxi Zhuang Autonomous Region, China. However, Deputy General Manager Qi Hong of the Shanghai Branch of China Construction Bank stressed to reporters that the technology is still in the experimental stage in China. He outlined the current status of blockchain usage:

We are currently using blockchain in sporadic financial products, rather than across the entire financial industry chain. The public does not have a good understanding of this technology in financing. But I believe that government calls for blockchain construction will help promote the development and more comprehensive application of this technology.

Further Reading

• If you were to receive $100,000, in what form would you keep it for 10 years?
• 【PA Weekly】China's blockchain industry welcomes new opportunities as Libra faces crisis

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