Blockchain Policy Layout: Five Major Cities Each with Their Own Characteristics

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

Beijing: Early Policy Layout, Strict Regulation

As the political and economic center of the country, Beijing has also shown vibrant vitality in the field of technology. The Beijing government recognized the potential innovations brought by Blockchain technology early on and began policy planning in 2016, leading the way nationwide.

In February 2016, the Zhongguancun Blockchain Industry Alliance was established, along with the Blockchain International Incubation Center. In December 2016, Beijing's financial industry development plan classified Blockchain as a technology for internet finance. This indicates that the Beijing government encourages Blockchain to innovate in the financial sector alongside other technologies.

In the subsequent development plan for the integration of technology and finance, the Beijing government encourages the exploration of research and application of innovative technologies such as Blockchain. The recently released financial technology development plan also includes Blockchain, requiring the promotion of the development of underlying technologies, including distributed technologies.

However, Beijing has very strict regulations on the blockchain industry, especially regarding cryptocurrencies. After multiple ministries required the cessation of token issuance and financing activities last year, Beijing's Chaoyang District has issued a notice this year prohibiting various venues from hosting virtual currency promotional activities.

Beijing's policy direction is closely related to its financial and talent advantages. In the future, Blockchain may not only innovate in the financial sector but also make breakthroughs in regulatory technology. Some experts believe that as the location of the regulatory headquarters, it is an inevitable trend for Beijing to use Blockchain technology for regulation.

Shanghai: Keep Up with the Situation Layout

Although Shanghai missed the internet development bonus, it does not seem to be lagging behind in the blockchain field. 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 was established in Shanghai. In 2015, Shanghai also hosted the first Global Blockchain Summit.

However, the Shanghai government's policy support started relatively late. It was not until 2017 that Blockchain was mentioned in some government documents. In 2018, Shanghai began to catch up in the field of Blockchain. In May, the Blockchain Industry Center was established; in June, the country's first provincial-level Blockchain Technology Research Center was inaugurated in Shanghai; in September, Yangpu District released 12 policies to support the Blockchain industry.

Although the lack of early-stage policies has caused Shanghai to lag behind in areas such as blockchain enterprises and patents, the blockchain industry is still in its early stages, and once the policies are in place, Shanghai will still have the opportunity to seize this transformative opportunity.

Guangzhou: Industry First, Policy Follow-up

Guangdong is the province in China that has introduced the most blockchain-related policies, with Guangzhou and Shenzhen being particularly prominent. In 2017, Guangzhou established the Blockchain Industry Association and an innovation base, and introduced the first blockchain industry support policy.

With industrial practice and policy support, Guangzhou currently has more than 6,100 Blockchain enterprises, ranking first in the country. In May of this year, Guangzhou also issued more detailed implementation rules. In October, the Guangzhou Development Zone announced that it will launch a new version of support policies, aiming to cultivate 3 to 5 Blockchain unicorn enterprises.

With the continuous favorable policies, Guangzhou, relying on the already gathered Blockchain enterprises, still has a lot of development space in this field in the future.

Shenzhen: Showcasing Ambitions as a Financial Technology Center

Shenzhen, as an innovative city, is also at the forefront of the Blockchain field. Since 2016, several government departments in Shenzhen have issued policy documents supporting Blockchain technology, laying the foundation for the development of inclusive finance, technology finance, and more.

From the perspective of the policy issuing units, Shenzhen's blockchain policies are mainly released by departments such as the Financial Office, reflecting Shenzhen's determination to catch up with Beijing and Shanghai in the financial sector. Under the guidance of these policies, Shenzhen is in a leading position nationwide in the application of blockchain technology in financial scenarios such as cross-border payments and electronic invoices.

Shenzhen has also been quite generous in terms of financial subsidies, establishing the Financial Innovation Award and the Technology Special Award, with a total prize fund of 25.5 million yuan. This year, it also launched the first phase of a 500 million yuan Blockchain venture capital fund.

With clear policy direction and substantial financial support, Shenzhen is expected to make significant strides in developing blockchain innovation in the financial sector. If fintech develops, combined with the existing internet industry, Shenzhen's position may further enhance.

Hangzhou: Policy Guidance, Application Oriented

Driven by Alibaba, Hangzhou has gathered a large number of internet companies and talents, laying the foundation for the development of Blockchain. Hangzhou has well-known enterprises in various segments of the Blockchain industry chain, showing a comprehensive development trend.

The Hangzhou government has paid attention to Blockchain earlier, mentioning it in policy documents as early as 2016. In April 2017, Hangzhou hosted the country's first government-sponsored Blockchain summit and launched the country's first Blockchain industrial park.

In December 2017, the Hangzhou municipal government issued guiding opinions, emphasizing the significance of Blockchain for future competition and requiring a first-mover advantage in this field. The focus of Hangzhou's policy is on leveraging existing advantages to form industrial clusters, rather than large-scale financial subsidies.

Currently, there are 55 companies in Hangzhou engaged in Blockchain technology services, and the ecosystem of Blockchain enterprises is becoming increasingly mature. Based on the development of the internet, Hangzhou has formed a natural attraction in terms of Blockchain innovation.