National People’s Congress, China’s parliament, and the Chinese People’s Political Consultative Conference, the most potent political advisory body in the country, have lately started their annual sessions. These are widely referred to as the “Two Sessions” or “lianghui” meetings. These meetings have been continuing since May 22. 

The National People’s Congress, or NPC, is China’s top legislative body. Approximately 3,000 delegates from about the country meet once a year to present proposals during the meetings. According to a Beijing News’ report on May 23, Jieqing Tan, deputy to the NPC, proposed setting up a special fund for blockchain industry development. If admitted, this fund would be led by the government. 

The fund aims to assist the development and growth of several encouraging blockchain enterprises, encourage blockchain technology innovation, and cultivate several unicorn enterprises in the blockchain space, states Tan.

Smart governance through blockchain

By maintaining the growth of the blockchain industry, Tan considers it will “modernize” the country’s governance system.  

Blockchain technology will not only be a comprehensive tool to drive China towards smart governance and a high-trust society, however, it can also help China to gain the upper hand globally in the future development of the technology, according to Tan. He believes by using this technology innovation lead; China will be able to protect its sovereignty and national security better. 

Tan suggested that a specific national blockchain industry development plan should be established. He explained that: “From the bottom technology standard, middle industry application development to the top-level system design, the national blockchain technology, industry and supervision three-dimensional strategic planning system should be well coordinated.”

Current challenges and initiatives 

The latest economic potential and new job opportunities acquired from blockchain technology are enormous. However, Tan pointed out that the number of limited blockchain enterprises, scalability, and lack of talent and information has been the central problem limiting the blockchain ecosystem from promoting a well-established ecosystem. 

As reported earlier, China’s central bank also secured $4.7 million in funding for its blockchain trade platform across the next three years. The tax bureau of Beijing declared its blockchain invoicing pilot application for a more eco-friendly, convenient, and transparent future governance.