China Proposes National Blockchain and Computing Network

China outlines national blockchain network to tie digital economy to industry

China has published a strategic policy urging the creation of a national blockchain network alongside an integrated computing power grid as part of a broader push to fuse the digital economy with real-world production. The opinion, issued by the Communist Party Central Committee and the State Council on Oct. 9 and reported by Xinhua, sets out 19 measures designed to accelerate technology-led industrial development and strengthen national data infrastructure.

Policy scope and strategic goals

The document frames blockchain and large-scale computing capacity as core building blocks for modernizing manufacturing, industrial internet systems, and national data logistics programs such as East Data, West Computing. It calls for clearer rules on data ownership, stronger protection of participants' rights, and pilot projects that treat data as an economic resource. The aim is to cultivate internationally competitive digital industry clusters and support companies that supply digital products and services.

Data ownership, market pilots, and cross-border flows

A central theme of the plan is improving the legal and operational framework around data. Authorities are directed to refine who owns data, how data transactions should be handled, and how stakeholders' interests are balanced. The policy advocates trials that create market mechanisms for data trading and for improving construction and operation of national data infrastructure, which is critical for secure data marketplaces and for enabling blockchain-based data certification.

Cross-border data mechanisms

Beyond domestic reforms, the opinion encourages exploration of secure, efficient cross-border data transfer mechanisms. That aligns with regional proposals in places like Guangdong, where draft plans for 2026–2030 include cross-border digital yuan trials, offshore finance experiments, and fintech pilots aimed at streamlining cross-border supply chain finance and intellectual property-backed lending.

Financial integration: blockchain in banking and the digital yuan expansion

The policy follows earlier moves to integrate blockchain into financial operations. Regulators including the State Administration of Taxation and the National Financial Regulatory Administration have advocated blockchain-based tax-data sharing to help banks better evaluate small-business borrowers. The notice recommended standardized information sharing among banks, tax authorities, and enterprises to improve credit models and support lending to compliant, tax-paying firms.

Digital yuan adoption and banking participants

China has been expanding digital yuan infrastructure in parallel. In August, the People’s Bank of China approved eight additional banking operators, bringing the number of connected institutions to 30. These banks, which include both regional and national lenders, are in the process of completing technical and business preparations to offer customer-facing digital renminbi services. The PBOC has linked the expansion to the nation’s 2026–2030 planning horizon, emphasizing secure and convenient access to central bank digital currency (CBDC) services.

Interest-bearing wallets and deposit protection for CBDC

In a separate PBOC framework introduced earlier, verified digital yuan wallets became eligible to earn interest, and qualifying CBDC balances were placed under the country’s deposit insurance regime. The framework also requires non-bank payment providers to keep customer reserve funds in digital yuan, which signals a push for broader institutional adoption and enhanced consumer protections within the CBDC ecosystem.

Payments pilots and real-world blockchain settlements

Operational pilots have already demonstrated CBDC utility in cross-border and trade contexts. Mobile Payment Network reported that ICBC’s Shanghai branch and ICBC Singapore settled nearly 10 million yuan in import shipping fees using an upgraded Digital Currency Express platform, with recipients credited in digital yuan on the same day. Such pilots underline the potential for faster, lower-cost settlement flows when CBDCs and interoperable payment rails are paired with enterprise blockchain services.

Regulatory guardrails for crypto, stablecoins, and tokenized assets

While promoting blockchain infrastructure, Chinese authorities continue to enforce strict rules on virtual asset markets. Earlier this year, a joint notice from the PBOC, China Securities Regulatory Commission, and other agencies extended regulatory oversight to stablecoins and tokenized assets. The guidance specifies that issuing offshore renminbi-pegged stablecoins requires authorization and reiterated limits on virtual currency trading and mining activities. Enforcement actions have also targeted operations that mask mining hardware as generic data center operations.

Implications for crypto firms and international businesses

These dual tracks of infrastructure development and tight market supervision mean businesses operating in China or serving Chinese users must navigate a detailed compliance landscape. For foreign firms that handle cross-border information flows involving China, additional constraints arise from the US Justice Department's Data Security Program. The program restricts certain data transactions that could grant access to sensitive American data to designated countries of concern, a list that includes China, Hong Kong, and Macau. Core provisions involving due diligence, audits, and reporting took effect in late 2025, adding compliance complexity for multinational fintech and data-driven companies.

What this means for blockchain, CBDC, and digital finance

China's national blockchain network proposal signals a comprehensive strategy: build interoperable infrastructure, steer data markets, and incentivize private investment in long-term technology. For the blockchain industry, the move could accelerate enterprise-grade distributed ledger adoption in supply chain, trade finance, and public services while preserving centralized oversight. For CBDC development, widening bank participation and enhanced wallet protections are likely to increase user trust and expand real-world use cases, from domestic retail payments to cross-border settlement experiments.

Opportunities and risks

Opportunities include faster data-driven credit decisions, improved supply chain transparency, and streamlined cross-border payments. Risks remain in the form of strict enforcement on decentralized crypto markets, ongoing limits on private issuance of RMB-pegged tokens, and international regulatory frictions over data access. Companies that combine compliance-first strategies with technical interoperability for blockchain and CBDC systems will be best positioned to participate in China’s evolving digital economy.

As China seeks to harmonize digital infrastructure with industrial policy, observers should watch pilot programs, regional free-trade zone trials, and regulatory updates closely. The next phase will reveal whether national blockchain and computing networks become a platform for broader global interoperability or a domestically focused architecture optimized for China’s policy priorities.