China’s national data strategy now places blockchain as the cornerstone of China’s digital strategy

China places blockchain at the core of national data strategy in new guidelines

China’s newly unveiled “National Data Infrastructure Construction Guidelines” place blockchain at the heart of the country’s strategy to enhance data security, transparency, and scalability as part of its broader digital transformation push.

In the guidelines released by National Development and Reform Commission and others, blockchain technology is highlighted as an important cornerstone to facilitate trusted data sharing across industries and geographical regions.

This document envisions blockchain network supporting data security, traceability, and prevention of tampering, as China creates a nationwide integrated data market.

China is expected to achieve a nationwide data infrastructure powered by blockchain that’s fully functional in 2029, according to the timeline proposed. All of the plan’s components will be introduced in phases.

In 2024-2026, government pilot programs will be launched in selected regions. These projects are designed to test and refine the blockchain frameworks as well as real-world application. These pilot projects will become fully integrated national networks by 2028. They will support large-scale data flows between provinces and sectors as well as public-private partnerships.

The Blockchain as an Infrastructure

Planned development is a central element of the plan. “trusted data spaces” Blockchain-based systems that enable multiparty sharing of data seamlessly while maintaining privacy, integrity and ownership rights.

The spaces will be decentralized, powered by the distributed ledger (DLT) technology, where individuals, businesses and governments can securely exchange information.

By creating unalterable records of transactions, the trusted spaces are designed to solve common challenges in data governance. The trusted spaces allow stakeholders to confirm data origin and comply with regulations. The ecosystems that are being developed will play a key role in sectors such as supply chain management and e-commerce.

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The guidelines also propose the design of “data markets&#8221These markets will be built using blockchain networks. These markets allow tokenization, which will facilitate fractional ownership of data assets and secure trading among platforms. The innovation will be expected to open up new revenue streams, and encourage data sharing.

Plan also includes the creation of platforms based on blockchain technology that are tailored for specific industries. In 2026, decentralized apps (dApps), in sectors as critical as digital financial services, green energy and intelligent manufacturing, will be tested through pilot projects. These platforms facilitate data sharing between businesses, increasing the adoption of blockchain technologies across all sectors.

As an example, guidelines are being developed to encourage blockchain-driven networks in the agricultural and industrial manufacturing sectors, which will improve product traceability while reducing fraud. DeFi-based blockchain solutions will be investigated in the financial industry, offering secure and low-cost options to current systems.

Privacy and security

China’s emphasis on blockchain extends beyond data sharing to securing the infrastructure itself. The guidelines outline plans to integrate advanced privacy-enhancing technology, such as multi-party computation with secure homomorphic encryption and zero-knowledge-proofs, into blockchain.

The combination of these two technologies will enable sensitive data to processed and analysed without being exposed. This is a key concern for sensitive sectors like healthcare and finance.

This document also describes the development of real-time monitoring systems based on blockchain technology to protect against unauthorised access, leakages, and cyber-threats. The initiative is aimed at reducing single points of failure by decentralizing the control over data flows.

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