Blockchain Is Part of China’s Master Plan for New Competitor Island to Hong Kong

Chinese authorities have released a master plan for turning southern island province Hainan into a free trade port, Xinhua news reports on June 1. A trade port system will focus on facilitating free trade, investment and cross-border capital flows in the whole island.

Government institutions reform

The master plan encourages government institutions to use blockchain and other technologies to reform government function. Authorities hope the new modern technologies will help build a comprehensive, scientific, standardized and effective free trade port governance system. They added that: 

“We should give full play to the role of modern information technology, such as big data and blockchain, standardize government service standards through government service platforms, realize government process reengineering and government service, and strengthen orderly sharing of data and improve government service and governance level.” 

China says it’s committed to strengthening the application of blockchain technology in intellectual property transactions, certifications and other aspects, and exploring new models suitable for the development of free trade ports. 

Hainan vs. Hong Kong

The decision to develop the entire island of Hainan into a pilot free trade zone was announced by Chinese President Xi Jinping during a visit to the island in April 2018.

Earlier last year, China’s richest man Jack Ma remarked at the Business Leaders’ Advisory Council that Hainan must aim to “overtake Hong Kong” by becoming a major player in digital-age international trade. The council was created to advise the government on its plan to accelerate Hainan’s opening up and the development of the Hainan Pilot Free Trade Zone, according to the South China Morning Post.

The Hainan free trade port will be "basically established" by 2025 and become "more mature" by 2035, says the plan jointly issued by the Central Committee of the Communist Party of China and the State Council.

As Cointelegraph reported previously, a special fund of about $142 million was set up to finance blockchain companies in Hainan at the end of last year.