SHORT INSIGHTS

• The government of the Nanshan District of Shenzhen makes a deal with Huawei to drive the adoption of blockchain, big data and 5G.
•  The Global Times tweeted on April 13, 2020 that the above deal is to mold China into a model area for the semiconductor industry.
• China is responsible for 66 percent of the total mining share.
• President Xi Jinping had asked to incentivize a crypto rally in 2019. Thus, seizing the opportunity presented by blockchain.

The government of the Nanshan District of Shenzhen has reported for having made a deal with telecommunications behemoth Huawei. This is to drive the adoption of blockchain and other technologies including big data and 5G. 

The Global Times tweeted on April 13, 2020 that this deal of Huawei and the Nanshan Government is for the establishment of the Kunpeng industrial demonstration zone. And also, to mold the city into a model area for the semiconductor industry.

#Huawei and Nanshan government of #Shenzhen signed an agreement Friday to establish #Kunpeng industrial demonstration zone to accelerate the application of #blockchain, artificial intelligence, big data, and #5G, and forge the city into a model area for the #chip industry. pic.twitter.com/lazdU6b437

— Global Times (@globaltimesnews) April 13, 2020

Cryptocurrency of China 

Shenzhen is considered to be the biggest technology hub in the country. It serves as a link between Hong Kong and China. Shenzhen is a city in south-eastern China.

Also in this city, Huawei became one of the biggest telecom giants in the world. Along with European-style campuses outside the city from a small vendor of phone switches.

According to a report, the People’s Bank of China (PBoC) has teamed up with Huawei and the country’s biggest commercial banks in 2020. This is to start testing its very own digital currency in Shenzhen and Suzhou.

The pilot of China’s central bank digital currency will involve in the cut down of industries. The industries including healthcare.

China Responsible for 66% of Total Mining Share

China hasn’t yet changed its decision regarding Bitcoin. It is reported to have a belligerent attitude to Bitcoin.

Despite the truth that China is responsible for 66 percent of the total mining share, it has banned this cryptocurrency since September 2017. China is the biggest producer share of BTC currently. This is as the CoinShares started to monitor its hash rate in the year 2017.

Opportunistic China

Additionally, China’s authoritarian regime taking control over Bitcoin mining has remained a major concern within the crypto industry. Hence, despite all the odd happenings, the blockchain technology seems to be promising for the communist state.

Last October, President Xi Jinping had stated to incentivize a crypto rally. Therefore, seizing the opportunity presented by blockchain.

In the year 2019, China had accounted for 22 percent of all blockchain-related VC deals, this was in comparison to a minuscule 2% in the year 2015.   

Umme Haani