China’s starting to use blockchain for trades

On June 1, 2020, Xinhua News reported that the Chinese authorities had presented their master plan for the construction of the largest special economic zone (SEZ) in Hainan Province. The country wants the island of Hainan to become a world-class free trade port. The focus should be on the escalation of the development of its financial market through free trade on the one hand and investments and cross-border capital flows on the whole island on the other.Those responsible released the announcement at a moment when China’s largest free trade center, Hong Kong, is under the threat of US threats of possible deprivation of special privileges. Hainan is China’s answer to concerns about Hong Kong’s future status as an international financial center.

 

Using blockchain as administrative functions

One of the key strategies of the Chinese government in Hainan is to use blockchain to reform and promote administrative functions. The authorities believe that modern technologies such as blockchain could help build a comprehensive, standardized and effective system for controlling the free trade port.“We should fully play the role of modern information technology like big data and blockchain. This includes the standardization of administrative services via platforms, the reengineering of government and administrative processes and the implementation of the administrative service. It is also important to strengthen the proper exchange of data and to improve the level of administrative service and management, ”added those responsible.