Blockchain Policy Layout: Five Cities Develop Their Unique Characteristics

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

Beijing: Early Policy Layout, Strict Regulation

Beijing has always been the political and economic center of the country. Driven by the Zhongguancun Science Park, Beijing's technology sector has also shown vigorous vitality. The Beijing government recognized the potential innovations brought by blockchain technology relatively early, starting policy planning in 2016, making it one of the earliest in the nation.

In February 2016, the Zhongguancun Blockchain Industry Alliance was officially established, and the Blockchain International Incubation Center was also founded. In December 2016, Beijing classified blockchain within the scope of internet financial technology. These policies indicate that the Beijing government encourages blockchain as an innovative integration of financial technology and internet technologies.

Since 2017, a series of plans and measures introduced by Beijing have encouraged the exploration of innovative technologies such as Blockchain. The recently released "Beijing Financial Technology Development Plan (2018-2022 )" once again includes Blockchain technology in the scope of Beijing's "Financial Technology" development plan.

But Beijing has very strict regulations on the blockchain industry, especially in the cryptocurrency sector. In August 2018, the Chaoyang District of Beijing issued a document requiring that shopping malls, office buildings, and other venues are not allowed to hold any form of virtual currency promotional activities.

Beijing's policy direction is closely related to its financial and talent advantages. In the future, in addition to innovation in the financial sector, Blockchain may also make breakthroughs in regulatory technology due to Beijing's unique political position. Experts believe that with regulatory headquarters from various industries located in Beijing, it is an inevitable trend to use blockchain technology for regulation.

Shanghai: Keep Up the Pace and Gain Momentum

Although Shanghai missed some opportunities during the internet development boom, it has shown a positive attitude towards the emerging technology of Blockchain. In fact, Shanghai may be one of the earliest hubs for the Blockchain industry in China. In June 2011, China's first Bitcoin trading platform, BTCC, was established in Shanghai. In 2015, the first Global Blockchain Summit was held in Shanghai, promoting the spread of the Blockchain concept in China.

Although it started early, the Shanghai government has acted relatively slowly in terms of blockchain policy. It was not until 2017 that blockchain began to be mentioned in government documents. In 2018, Shanghai began to catch up in the blockchain field. In May, the Blockchain Industry Center was established; in June, the country's first provincial-level government-affiliated blockchain technology research center was unveiled in Shanghai; in September, the "Several Policy Provisions for Promoting the Development of the Blockchain Industry in Yangpu District" was introduced, proposing 12 supporting policies.

Although the lack of early policies has led to Shanghai lagging behind in the number of Blockchain companies, patent applications, and other aspects, the current Blockchain industry is still in its early stages. After the implementation of supportive policies, Shanghai still has the opportunity to seize the opportunities brought by the Blockchain revolution.

Guangzhou: Industry First, Policy Follow-up

Guangdong is the province in the country that has issued the most blockchain-related policies and plans, with Guangzhou and Shenzhen being particularly prominent. Currently, these policies mainly focus on the financial sector.

In July 2017, the Blockchain Industry Association was established in Guangzhou; in October, the Blockchain Innovation Base was established; in December, the first blockchain industry support policy "Measures for Promoting the Development of the Blockchain Industry in Huangpu District, Guangzhou Development Zone" was introduced, covering various reward and support measures.

With industrial practice and policy support, Guangzhou now has more than 6,000 blockchain companies, ranking first in the country. The government's support is continuously increasing, with implementation rules issued in May 2018 and an announcement in October to launch a new version of "Blockchain 10 Rules", aiming to foster 3-5 blockchain unicorn companies.

With the continuous favorable policies, Guangzhou has huge development potential in the future, relying on the already gathered Blockchain companies.

Shenzhen: Demonstrating Ambitions as a Financial Technology Hub

As the country's first innovative city, Shenzhen has rapidly risen in fields such as smart hardware and biosciences, giving birth to a number of internet giants. In the face of the development of Blockchain technology, Shenzhen is also at the forefront.

Since 2016, multiple government departments in Shenzhen have successively issued policy documents supporting Blockchain technology, laying a good foundation for the development of inclusive finance, technological finance, and so on. From the perspective of the policy issuing units, they are mainly concentrated in the financial sector, reflecting Shenzhen's determination to catch up with Beijing, Shanghai, and Guangzhou in the area of financial shortcomings.

Under the guidance of policies, Shenzhen is in a leading position nationwide in the application of Blockchain technology in financial scenarios such as cross-border payments and electronic vouchers. Shenzhen has also been quite generous in terms of financial subsidies, introducing measures such as financial innovation awards and special fund subsidies.

Clear policy direction and strong fiscal support make Shenzhen's prospects in developing Blockchain innovation in the financial sector promising. If fintech develops and is complemented by the existing internet industry, Shenzhen's position is expected to further improve.

Hangzhou: Policy Guidance, Application Orientation

Relying on internet giants like Alibaba, Hangzhou has gathered a large number of excellent internet companies and talents, laying a foundation for the development of the Blockchain industry. Hangzhou has well-known companies in all aspects of the Blockchain industry chain, presenting a comprehensive development trend.

The Hangzhou government paid attention to Blockchain early on, mentioning it in policy documents as far back as 2016. In April 2017, Hangzhou hosted the country's first government-sponsored Blockchain summit and launched the first Blockchain industrial park in the country. In December 2017, the Hangzhou municipal government issued a document emphasizing the importance of Blockchain for future competition, calling for a focus on application orientation.

Although the scale of fiscal subsidies is not as large as in other cities, Hangzhou's policies mainly focus on leveraging existing advantages to form industry clusters. As of August 2018, there are 55 companies engaged in Blockchain technology services in Hangzhou, and the Blockchain ecosystem is becoming increasingly mature.