Research shows: Currently, there are over 700 blockchain companies in China.

In a recent announcement, China's top leader Xi Jinping declared that the country will focus on developing the blockchain technology. This has generated significant momentum nationwide, not only in terms of policies but also in the continuous emergence of various analytical reports. One of the recent releases includes the China Electronics Industry Development (CCID) report.

CCID is a Chinese government organization that reports directly to the Ministry of Industry and Information Technology, with a mission to assist in the development of China's information industry.

According to a research report released by CCID on 10/27, statistical data shows that there are currently over 700 blockchain enterprises in China, with over 500 related investments. Among these 700+ blockchain enterprises, research institutions account for 83, and banks make up as many as 34.

The data also indicates that since the first half of 2019, the country and various ministries have jointly issued 12 blockchain policies. For example, the Cyberspace Administration of China introduced regulations in January targeting blockchain companies operating in China, including anti-anonymity rules.

CCID claims to be optimistic about the local startups in the industry, with internet giants, startups, research institutions, and financial institutions all driving further development in this field. The organization also stated:

The number of blockchain patents filed in China in the first half of 2019 was 3,547, surpassing the total of over 2,435 patents published in 2018.

Lack of Killer Applications

We continue to see data showing that China released 151 blockchain application cases in the first half of 2019. These applications cover 28 areas, including finance, e-government, healthcare, intellectual property protection, and traceability. However, the organization acknowledges that China's blockchain applications still lack several key factors:

Firstly, there are still issues with large-scale application and promotion in the Chinese blockchain industry. Secondly, there is a lack of killer applications, a lack of applications that everyone will truly use, and finally, a lack of authoritative third-party evaluations.

The Chinese government is likely to address the third issue first, acting as an authoritative regulatory body. The recent response from the U.S. regarding Facebook's Libra project has sparked widespread discussion in the community:

Is the U.S. unwilling, leaving China to take the lead?

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