The Shanghai government partners with banks to foster the use of blockchain for global trade. China’s central bank, The People’s Bank of China is also one of the six banks.
On Nov. 7 The Global Times reported that the Shanghai Municipal Commission of Commerce, Shanghai customs and representatives from six branches signed a Blockchain Alliance proposal for the city’s port area.
Blockchain For Global Trade
Chen Huifang, a professor at the College of Information Science and Electronic Engineering of Zhejiang University said that blockchain was previously used in China for implementing free trade zones across the country while adding:
“Blockchain technology increases the reliability of information, thus improving the efficiency of customs clearance, reducing costs and promoting trade facilitation.”
Ye Jian, an official from the General Administration of Customs of Shanghai said that the blockchain alliance represents “the first blockchain application project in customs and the first service project for the CIIE.”
Jian added that blockchain had been successfully implemented in the cross-border yuan trade financing services for Shanghai’s single window system. It would help in tackling data imbalance issues in the process.
He added that blockchain had been successfully implemented in the newly-launched cross-border yuan trade financing services for Shanghai’s single window system, helping to tackle data imbalance issues in the process.
The Global Times reported that a pilot blockchain system was trialed for a cross-border financial services in Nanning, South China’s Guangxi Zhuang Autonomous Region, this October.
Vice director of China Construction Bank’s (Shanghai branch), Qi Hong stated that blockchain is still early and in the experimental phase in China while adding:
“We now use blockchain in sporadic financial products instead of the whole finance industry chain, and the public doesn’t have a sound understanding of the technology when it comes to financing. But I think the government’s call for blockchain construction will help push the technology’s application in a more comprehensive way.”