Blockchain Policy Layout: Five Major Cities Show Their Talents

The布局 of the five cities of Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou in the blockchain field is closely related to their economic, talent, and technological advantages. Based on their inherent advantages, the governments of these cities have also successively introduced a series of policy plans to safeguard the development of the blockchain industry.

Beijing: Policy First, Strict Regulation

As the political and economic center of the country, Beijing has demonstrated foresight in blockchain technology. In February 2016, the Zhongguancun Blockchain Industry Alliance was established, along with the establishment of the Blockchain International Incubation Center. In the planning of December 2016, Beijing positioned blockchain as one of the Internet financial technologies. Since then, the Beijing government has encouraged the application of innovative technologies such as blockchain in the financial sector in multiple plans.

However, Beijing has very strict regulations on the blockchain industry, especially regarding cryptocurrencies. In August 2018, Chaoyang District issued a document prohibiting the holding of virtual currency promotion activities, and this policy has a demonstrative effect across the country.

In the future, Beijing is expected to continue leading the blockchain entrepreneurship boom in financial innovation and regulatory technology. Professor Huang Zhen from the Central University of Finance and Economics believes that as the headquarters of regulation, it is an inevitable trend for Beijing to use blockchain technology for regulation.

Shanghai: Seizing the Initiative

Although Shanghai is one of the earliest hubs for the blockchain industry in China, policy support started relatively late. Until 2017, blockchain only appeared as a marginal topic in government documents. In 2018, Shanghai began to accelerate its layout: in May, the Blockchain Industry Center was established; in June, the country's first provincial-level Blockchain Technology Research Center was established; and in September, Yangpu District released 12 support policies.

Although the lack of early policies has led to Shanghai lagging behind in terms of the number of blockchain companies, the blockchain industry is still in its early stages, and Shanghai still has the opportunity to seize this transformative opportunity.

Guangzhou: Industry First, Policy Follow-up

Guangzhou is one of the cities in China that has introduced the most blockchain policies. In 2017, Guangzhou established the Blockchain Industry Association and an innovation base, and introduced the first blockchain industry support policy. As of August 2018, Guangzhou has 6,131 blockchain companies, ranking first in the country.

The Guangzhou government continues to increase its support efforts. In May 2018, implementation details were issued, and in October, it was announced that a new version of "Blockchain 10 Measures" would be launched, aiming to support 3-5 unicorn enterprises. With the continuous favorable policies, the prospects for the blockchain industry in Guangzhou are promising.

Shenzhen: Locking in the Financial Technology Center

Shenzhen is at the forefront of blockchain policy, mainly focusing on applications in the financial sector. From 2016 to 2018, multiple government departments in Shenzhen issued documents supporting blockchain, laying the foundation for the development of tech finance.

Shenzhen has a strong financial subsidy policy. In 2017, it established the Financial Innovation Award and the Financial Technology Special Award, with a total annual prize of 25.5 million yuan. In March 2018, it launched a funding program with a maximum of 2 million yuan for individual projects, and in April, it initiated a 500 million yuan Blockchain venture capital fund.

With policy guidance and financial support, Shenzhen is in a leading position nationwide in the blockchain applications of financial scenarios such as cross-border payments and electronic invoices, and is expected to further enhance its financial technology strength.

Hangzhou: Leverage Advantages, Application-Oriented

Thanks to internet giants like Alibaba, Hangzhou had technological, talent, and economic advantages in the early stages of blockchain development. Blockchain companies in Hangzhou cover all aspects of the industry, showing a comprehensive development trend.

The Hangzhou government has an open attitude, hosting the country's first government Blockchain Summit in April 2017 and launching the first Blockchain industrial park. The policy focuses on leveraging existing advantages to form industrial clusters rather than large-scale fiscal subsidies.

As of August 2018, Hangzhou has 55 blockchain technology service-related enterprises. Based on the internet industry, the blockchain ecosystem in Hangzhou is becoming increasingly mature, with broad development prospects.