China Plans National Blockchain Network Under New Digital Economy Policy
China has outlined plans for a national blockchain network and an integrated computing infrastructure as part of a broader policy initiative to connect its digital economy with industrial production. The proposals form part of 19 measures aimed at developing technology-driven industries, strengthening data infrastructure and encouraging businesses to adopt digital technologies.
Xinhua News Agency published the policy opinion on Oct. 9, issued by the Communist Party of China Central Committee and the State Council. The document places blockchain development alongside manufacturing modernization, national data infrastructure and initiatives designed to integrate digital technologies into the real economy.
China Includes Blockchain in National Digital Infrastructure Plans
The policy calls for the development of both a national blockchain network and an integrated national computing network. It also directs authorities to advance smart manufacturing, industrial internet projects and the East Data, West Computing program.
Beyond infrastructure, the opinion addresses the rules governing data ownership, transactions, rights allocation and the protection of participants' economic interests. Authorities are also expected to conduct pilot projects that treat data as an economic resource and improve the development and operation of national data infrastructure.
The industrial strategy includes support for companies adopting digital technologies and businesses providing digital products and services. The document also calls for the development of internationally competitive digital industry clusters, supported by adjustments to the policy framework.
Financing is another component of the initiative. The proposed measures include mechanisms to attract investment into emerging industries and distribute investment risks. Authorities are directed to use existing fiscal policies while encouraging sustained private-sector investment in technology development.
China Expands Data Markets and Cross-Border Digital Finance
The policy also proposes an open, shared and secure data market, including exploration of mechanisms for efficient cross-border data transfers. These provisions complement its domestic infrastructure plans by addressing how data can be exchanged and its economic value managed.
Separately, Guangdong's Department of Commerce included cross-border digital yuan trials in a draft free trade zone development plan for 2026–2030, released on Aug. 6. The consultation document covered additional digital yuan applications, offshore finance, green finance and financial technology trials.
The Guangdong proposal also addressed cross-border supply chain financing and loans secured by intellectual property. For financial institutions operating in the zone, it included proposed trials for cross-border credit asset transfers and multi-currency accounts. Public feedback was invited until Sep. 5 before the department reviewed submissions and finalized the plan.
Digital yuan payments have also been used in cross-border trade. Mobile Payment Network reported in July that ICBC's Shanghai branch and ICBC Singapore had settled nearly 10 million yuan in import shipping fees through the upgraded Digital Currency Express platform. The report said the recipient received the payment on the same day.
Digital Yuan Network Expands to 30 Banking Operators
China's digital currency infrastructure has expanded alongside these policy initiatives. On Aug. 17, the People's Bank of China (PBOC) announced approval for eight additional banking operators, increasing the number of participating operators from 22 to 30.
The newly approved institutions were Ping An Bank, Hengfeng Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha and Guangxi Beibu Gulf Bank. The central bank said the institutions had connected to its digital renminbi system, although customer services remained dependent on the completion of business and technical preparations.
The PBOC linked the expansion to China's 2026–2030 national planning period and its objective of improving access to secure and convenient digital yuan services.
A separate framework introduced by the central bank in January made verified digital yuan wallets eligible to earn interest. Qualifying balances also received protection under China's deposit insurance system. Under the framework, non-bank payment companies are required to maintain customer reserve funds entirely in digital yuan.
China Maintains Restrictions on Cryptocurrency Activities
Plans for blockchain infrastructure do not represent a general relaxation of China's restrictions on cryptocurrency businesses. In February, the PBOC, the China Securities Regulatory Commission and other agencies issued a notice extending oversight to stablecoins and tokenized assets.
The notice requires authorization for the issuance of offshore stablecoins pegged to the renminbi. Regulators also maintained restrictions on virtual currency-related businesses and mining, including enforcement against operations presented as data centers but actually used to house mining equipment.
The distinction is important because blockchain infrastructure, tokenized assets, stablecoins and cryptocurrency mining fall under different regulatory considerations. The national blockchain network proposal focuses on digital infrastructure and industrial development, while the separate restrictions continue to govern specified virtual currency activities.
US Data Security Rules Add Cross-Border Compliance Requirements
Cross-border digital activity involving China also faces restrictions under US data security rules. The US Department of Justice's Data Security Program prohibits or restricts certain transactions that could give countries of concern or covered persons access to sensitive American data.
The program covers US government-related information and bulk personal data, including financial, health, biometric and geolocation records. The Justice Department designates China, including Hong Kong and Macau, as a country of concern under the framework.
According to the department, the program took effect in April 2025, while requirements covering due diligence, audits and certain reporting obligations became effective in October 2025.
Together, China's blockchain and digital yuan initiatives illustrate the government's focus on expanding digital infrastructure and integrating technology into economic activity. At the same time, its cryptocurrency restrictions and the US rules governing sensitive data remain relevant to businesses operating across borders.
Data source: crypto.news
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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