China’s plan for the development of the Hainan island is related to blockchain technology. Hainan is an island in the South China Sea, which is important for the Middle Kingdom for strategic and economic reasons.
China wants to transform Hainan into a strategically important island
The media reported that the Chinese authorities have just announced a plan to transform the island of Hainan into a strategically important region. For example, they want to build an important commercial port there.
The Chinese trading port system will focus on facilitating the development of the concept of free trade and making investments and cross-border capital flows.
Blockchain in China’s new plan
China’s plan also includes the important role of blockchain. Beijing wants government institutions to start using blockchain technology, which will help reform the state management system. The authorities hope that modern technologies will help build a comprehensive, standardized and effective port management system.
“We should take full advantage of the role of modern information technologies, such as big data and blockchain, standardize government service standards (…), reorganize government processes and administrative services, and organize data sharing (…)”
– Chinese experts say.
Blockchain technology is to be used in transactions regarding intellectual property, certification and other such aspects. It is also to be used in the process of building the aforementioned ports.
Hainan vs. Hong Kong
The decision to transform the entire island of Hainan into a pilot free trade area was announced by Chinese President Xi Jinping during a visit to the island in April 2018.
Earlier last year, China’s richest man, Jack Ma, noticed during a debate of the Business Leaders’ Advisory Council that the island must strive to “Overtaking Hong Kong”, becoming a significant player in international trade in the digital age. The council itself is important because it was created to advise the government on the economy.
According to the authorities, the port on Hainan will remain “Essentially established” by 2025 and will happen “More mature” until 2035
A special fund of around $ 142 million was also created at the end of last year to further finance the activities of blockchain companies in Hainan.