Majority of China's Tech Startups Are Exploring Blockchain Technology, Report Reveals

A recent report has revealed that the majority of China’s top technology startups are exploring blockchain technology. At a time where the world is recovering from the negative economic impact of the coronavirus disease, China’s tech industry is experiencing a boom.

The report shows that cumulatively, about 80% of the top tech companies recognized by the SCMP have either run a blockchain project or invested in blockchain technology.’

The data reveals the correlating drive by the Chinese based firms to complement the efforts of the government to transition to a digital economy. The transition has been bolstered by blockchain technology.

US-China Trade War Boosting China’s Growth

The fight to assume economic dominance between the United States of America and China has caused a strain in the existing trade agreement between the two nations. While this has had its toll on the global market, it has created a massive shift in the rise of blockchain deals as well as other stock markets in China. 

According to the Report:

“Unsteady US-China relations, exacerbated by a string of accounting scandals for Chinese companies listed in the US, may also further impact the decisions of Chinese companies on where to raise capital, IPO bankers expect a pause in new Chinese listings in the US in the near term as companies, advisers and investors wait for more clarity. Year-to-date, only 12 Chinese companies have listed in the US, compared with 38 in 2019 and 42  in 2018.”

The implication for blockchain-based companies is that the Blockchain 50, an index comprising of Chinese blockchain-based tech companies that is listed on the Shenzhen Exchange has experienced a 20% year to date boost. 

Is China Ready to Lead in Blockchain Drive?

The Chinese government has announced an ambitious blueprint to dominate the global tech standards, including blockchain by 2035. China took an initial hard stance on cryptocurrencies with its legislation but has eased its position to allow blockchain-based industries to thrive. China is not just leading a Pan-Asian initiative to compete with US-based innovations, and it is ahead in its digital yuan project.