Blockchain Policy Layout: Five Major Cities Showcase Their Characteristics

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

Beijing: Early policy layout, strict regulation

As the political and economic center of the country, Beijing has also shown strong vitality in the field of technology. In terms of Blockchain technology, the Beijing government has been aware of the potential changes brought by this new technology since 2016 and has made relevant policy arrangements, leading the country.

In February 2016, the Zhongguancun Blockchain Industry Alliance was established, and the Blockchain International Incubation Center was also established. In December 2016, Beijing classified blockchain as a technology for internet finance. These policies indicate that the Beijing government encourages blockchain to innovate in the financial sector alongside financial technology and other technologies.

In a series of plans and measures introduced in 2017, the Beijing government encouraged the exploration of innovative technologies such as Blockchain for research and application. In 2018, Beijing included Blockchain technology in its "Fintech" development plan, requiring the active promotion of the development of underlying technologies, including Blockchain.

However, Beijing has very strict regulations on the blockchain industry, especially in the cryptocurrency sector. In August 2018, the Chaoyang District of Beijing required that no form of virtual currency promotion activities be held.

The policy direction of Beijing is closely related to its financial and talent advantages. In the future, blockchain, in addition to innovating in the financial sector, may also make breakthroughs in regulatory technology due to Beijing's unique political location. Regulatory technology is still a blue ocean in China, and if Beijing can seize its political location advantage and combine it with blockchain, it is expected to continue leading the blockchain entrepreneurship boom.

Shanghai: Follow the pace closely after seeing the situation clearly

Shanghai was once considered to have missed out on the benefits of Internet development, but in the face of blockchain, this emerging technology, Shanghai does not seem to show a particularly proactive attitude.

In fact, Shanghai may be the earliest hub of the blockchain industry in China. In June 2011, China's first Bitcoin trading platform was established in Shanghai. In 2015, Wanxiang Blockchain Lab hosted the first Global Blockchain Summit in Shanghai, greatly promoting the spread of the "blockchain" concept in China.

However, the Shanghai government's policy support did not keep pace in a timely manner. It was not until 2016 that Blockchain began to appear in some government documents. In March 2017, Baoshan District mentioned tracking the construction of a Blockchain incubation base.

In 2018, Shanghai began to catch up in the field of Blockchain. In May, the Blockchain Industry Center was established. In June, the first provincial-level government-affiliated Blockchain Technology Research Center in the country was established in Shanghai. In September, Yangpu District released 12 policies to support the development of the Blockchain industry, with unprecedented strength.

Although the lack of policies before 2018 has left Shanghai lagging behind in terms of blockchain startups and patent applications, the blockchain industry is still in its early stages, and Shanghai still has the opportunity to seize this transformative opportunity.

Guangzhou: Industry First, Policy Follows

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

In July 2017, Guangzhou established the Blockchain Industry Association. In October, it set up the Blockchain Innovation Base, constructing an "one base and four platforms" industrial layout. In December, it issued the first blockchain industry support policy, covering various rewards and support, with an expected annual increase of about 200 million yuan in fiscal investment.

Under this development model, as of August 2018, Guangzhou has 6,131 Blockchain enterprises, ranking first in the country. The Guangzhou government's policy support continues to increase.

In May 2018, the Huangpu District of Guangzhou and the Guangzhou Development Zone issued implementation rules to implement special policies for Blockchain. In October, the Guangzhou Development Zone announced that a new version of the "10 Blockchain Policies" would be introduced, with the goal of fostering 3 to 5 Blockchain unicorn companies.

With continued favorable policies, Guangzhou has a broad development prospect in the future, relying on the large number of blockchain enterprises that have already gathered.

Shenzhen: Policies Highlight Ambitions of a Financial Technology Center

As the country's first innovative city, Shenzhen is also at the forefront of the development of Blockchain technology. From 2016 to 2018, multiple government departments in Shenzhen issued documents supporting Blockchain technology, laying a solid policy foundation for the development of financial technology.

From the perspective of the policy issuing unit, Shenzhen's Blockchain policy is mainly released by the Financial Office, demonstrating Shenzhen's determination to catch up with Beijing and Shanghai in the financial sector. Shenzhen is in a leading position in the country regarding the application of Blockchain in financial scenarios such as cross-border payments and electronic certificates.

In terms of financial subsidies, Shenzhen is also quite generous. In September 2017, Shenzhen launched two financial innovation awards with a total annual prize of 25.5 million yuan. In March 2018, Shenzhen announced a plan to fund emerging technology companies such as Blockchain with cash, with a maximum of 2 million yuan for a single project. In April, Shenzhen's first Blockchain venture capital fund was launched, with an initial scale of 500 million yuan.

Clear policy guidance and large-scale financial subsidies make Shenzhen's development in the blockchain innovation financial sector promising. If Shenzhen's fintech develops, combined with the existing internet industry, it may change the ranking of first-tier cities in the future.

Hangzhou: Policy Guidance, Application-Oriented

Hangzhou, driven by Alibaba, has gathered a large number of outstanding Internet companies and talents, laying a technical, talent, and economic advantage for the development of the Blockchain industry. Hangzhou has well-known enterprises in all segments of the Blockchain industry, showing a comprehensive development trend.

The Hangzhou government has paid early attention to Blockchain, mentioning in December 2016 the need to gather Blockchain and other fintech companies. In April 2017, Hangzhou hosted the country's first government-sponsored Blockchain summit, launched the first Blockchain industrial park in the country, and introduced related support policies.

In December 2017, the Hangzhou municipal government emphasized the significance of Blockchain for future competition, requiring adherence to government guidance, highlighting application orientation, and cultivating high-end industries such as Blockchain.

The policy guidance of the Hangzhou government mainly focuses on leveraging existing advantages to form industry clusters, rather than large-scale financial subsidies. As of August 2018, there were 55 companies engaged in Blockchain-related businesses in Hangzhou, and the ecosystem is becoming increasingly mature.