A new study of how Chinese firms have been making use of the millions of dollars they have injected into blockchain technology has found that companies are prioritizing government-related developments and financial sector solutions.
The report, published by Securities Daily (via East Money), looked at how 23 publically listed companies have been spending the funds they have invested in blockchain-themed R&D since 2016, the year when larger Chinese firms “began testing the waters” of blockchain research.
The likes of Yuanguang Software, primarily an enterprise software provider, have increased their R&D spending by just under 7% per year – around USD 24.3m since 2016 – with much of that money going directly to blockchain-themed research efforts.
In many cases, companies are channeling a whopping 20% of their annual revenues into R&D, again, with blockchain taking the lion’s share.
A number of Yuanguang Software blockchain solutions have passed the product planning review stage, the media outlet added, including a digital education platform and a financial service platform designed for use in the energy sector.
Another firm, Hailian Jinhui, a steel industry player with stated “digital currency” interests, has applied for almost 50 blockchain patents and has been engaged in blockchain standardization efforts.
Although real-world applications are still largely in the pipelines, Chinese firms appear to believe that a breakthrough in commercialization is on its way, with a prominent IT professor opining that most firms consider that patents will provide them with a “competitive weapon” in the blockchain race.
A “majority” of the surveyed companies have looked to implement government-focused developments, particularly as a number of central and local government organs have been so keen to introduce blockchain-powered data sharing and exchange, business collaboration, and digital documentation solutions.
The media outlet reported that a total of 32 provinces and municipalities across the country have already issued blockchain-related policy documents – a further sign of growth for the blockchain sector in the public sector.
Banks and financial organizations, too, are becoming increasingly blockchain-keen, and are keen to boost contact-free, digital solutions pertaining to account registration and management, invoicing, bookkeeping and tax-related matters.
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