China’s latest 5-year plan mentioned blockchain technology particularly and suggested that there is an increasing focus on the research of emerging technologies. China appears determined to stay ahead of the curve when it comes to the utilization of blockchain technology as it was seen again earlier this week, after the release of the Asian country’s latest five-year development plan.
The term ‘blockchain’ was allegedly mentioned for the first time in the 14th of China’s regular five-year plans that lay out the country’s economic priorities for the time between 2021 and 2025, based on reports from a local news outlet Pingwest.
China’s exploration into new and emerging technologies has been relentless in recent years. From its current scheme to roll out a central bank digital currency (CBDC) to its usage of digital biometric hardware wallets for the digital yuan, the country is already believed to be at the forefront of this national currency issuance.
All of that is happening despite a general distrust of open-source, decentralized cryptos within China, as is evidenced by the country’s bans on initial coin offerings (ICOs) and crypto exchanges.
Blockchain And CBDC In China
The recent unveiling of digital yuan payments in China’s Shanghai department stores, coupled with the continuous rollout of ATMs in the Shenzen area, also aligns perfectly with China’s target to have around 65% of its population in various urban areas by the end of the current five-year period.
China is willing to work with business enterprises in pursuit of development as shown recently when the China Merchants Port partnered with Alibaba to promote the integration of blockchain technology within the port sector. China Merchants Port is the biggest port operator in the Asian country.
The 5-year plan was criticized in other areas, mostly for its lack of wider economic ambition, coupled with a tendency to focus majorly on debt reduction. Going in contrary to U.S. President Joe Biden’s recent decision to give another $1.9 trillion as part of a COVID-19 stimulus package, China recently shunned plans to offer a $140 billion package for the same purpose.
Technology spending is anticipated to contribute more returns to China’s GDP in the future. Research and development spending was slated to be increased by 7% every year until the end of 2025.