China wants a national blockchain network but keeps its crypto crackdown

China’s Communist Party Central Committee and State Council have called for a national blockchain network and an integrated national computing network as part of a 19-measure plan to fold digital technology into industry, state news agency Xinhua reported on October 9, 2026. The document does not relax China’s restrictions on crypto trading and mining.

China’s national blockchain network targets industrial modernization

The proposed national blockchain network forms part of a broader effort to develop the infrastructure needed to support digital economic activity. Under the new opinion, authorities are expected to advance blockchain capabilities alongside an integrated computing network, industrial internet initiatives and smart manufacturing projects.

The document also references the East Data, West Computing program, a national initiative designed to channel computing resources toward regions with available energy and infrastructure while supporting demand for computing capacity elsewhere.

Together, these measures place digital infrastructure alongside industrial upgrading rather than treating it as an isolated technology project. Blockchain could support verifiable data exchange, recordkeeping and coordination between organizations, although the policy does not specify a detailed technical design or deployment timetable for the proposed network.

The opinion also calls for internationally competitive digital industry clusters and support for businesses developing or adopting digital products and services. Authorities are encouraged to use existing fiscal policy tools, improve investment mechanisms and promote long-term private-sector capital commitments to emerging industries.

Data governance is another central element. The proposed reforms cover ownership rights, market transactions, the allocation of data-related rights and protections for participants’ economic interests. Pilot programs would explore ways to treat data as an economic resource while improving the construction and operation of national data infrastructure.

China has already pursued blockchain applications in business finance. In April, the State Administration of Taxation and the National Financial Regulatory Administration encouraged blockchain-based tax-data sharing to improve information exchange between banks, tax authorities and businesses.

The initiative was intended to help lenders assess small-business borrowers and refine credit evaluation and loan approval processes, particularly for compliant enterprises with tax records that could support their financing applications.

Cross-border data flows and digital yuan expansion gain momentum

The opinion also calls for a more open, shared and secure data market, including mechanisms to facilitate cross-border data transfers. These proposals could have implications for companies operating across jurisdictions, particularly those handling financial information, supply-chain records and other commercially valuable data.

The latest blueprint does not provide a detailed framework for international data transfers. However, its emphasis on market development, data rights and security suggests that regulatory coordination will remain an important part of implementation.

Regional initiatives offer a glimpse of how these priorities could translate into financial services. Guangdong’s proposed 2026–2030 free trade zone development plan included cross-border digital yuan experiments, offshore finance and financial technology trials. The draft also addressed supply-chain finance and lending backed by intellectual property.

Cross-border digital yuan payments have also progressed. In July, Mobile Payment Network reported that Industrial and Commercial Bank of China’s Shanghai branch and ICBC Singapore had processed nearly 10 million yuan in import shipping fees through an upgraded Digital Currency Express platform, with the recipient receiving payment on the same day.

Meanwhile, the People’s Bank of China approved eight additional banking operators for its digital yuan system on August 17, bringing the total to 30. The institutions included Ping An Bank, Bank of Shanghai, Bank of Hangzhou and Bank of Changsha. They must complete outstanding business and technical preparations before providing customer-facing services.

The central bank has also introduced changes allowing eligible, verified digital yuan wallets to earn interest, alongside deposit insurance protection for qualifying balances. These developments demonstrate that China’s digital financial infrastructure is expanding beyond pilot projects into a broader banking ecosystem.

Crypto restrictions and cross-border data rules remain in force

Despite its support for blockchain infrastructure, China continues to maintain restrictions on cryptocurrency-related activities. A separate regulatory notice issued in February extended oversight to stablecoins and tokenized real-world assets, while retaining restrictions on virtual currency businesses and mining.

The distinction is important: a government-backed blockchain infrastructure initiative is not the same as permission to issue or trade decentralized cryptocurrencies. The proposed national blockchain network should therefore be understood within China’s wider industrial and financial policy framework, rather than as evidence of a change in its crypto restrictions.

Cross-border information exchange also faces regulatory constraints outside China. The US Department of Justice’s Data Security Program, effective April 8, 2025, prohibits or restricts certain transactions that could give countries of concern or covered persons access to sensitive American personal or government-related data. China, including Hong Kong and Macau, is designated a country of concern under the program.

For multinational businesses, these rules illustrate the complexity of building connected digital systems across borders. Data-sharing arrangements may need to account for privacy obligations, national security requirements and restrictions on specific categories of transactions.

China’s latest policy establishes an ambitious direction for digital infrastructure, industrial modernization and data-market development. Its practical impact will depend on how authorities translate the proposals into technical standards, operating rules and investment programs.

The proposed network is one part of that broader agenda. Whether the national blockchain network becomes a widely used foundation for industrial data exchange and commercial services will ultimately depend on implementation, interoperability and the participation of businesses and public institutions.