Hangzhou’s blockchain project to push innovation, mayor says
Hangzhou’s Blockchain Industrial Park is already attracting industry players, underlining the eastern city’s leading role in advancing China’s new economy, the city’s mayor, Xu Liyi, said on Sunday.
The city announced the park’s launch on April 9 and said 10 blockchain technology companies had signed agreements, with many more expected to follow.
In February, Hangzhou, Zhejiang province, listed the blockchain industry in its Government Work Report as an essential emerging sector, along with artificial intelligence, virtual reality, quantum technology and commercial aviation and aerospace.
A blockchain is a public ledger of all transactions that may be applied in a wide variety of settings to provide security. It was developed for the cryptocurrency Bitcoin, but many other applications are possible.
Hangzhou, a city of innovation and economic vitality, will focus on innovative development and highlight the leading role of the new economy in its blueprint, Xu said on Sunday in a presentation at the second Vision China event at the Hangzhou International Expo Center.
“Hangzhou is home to wellknown businesses such as internet giant Alibaba, Hikvision — which provides internet-of-things solutions — and automaker Geely,” the mayor said. “Its developments in e-commerce, cloud computing and big data represent the most advanced internationally.”
The city’s GDP reached 1.2 trillion yuan ($191 billion) last year, up by 8 percent year-onyear. Meanwhile, the value added in new industries and business models reached 425 billion yuan, an increase of 20.4 percent from 2016.
The Government Work Report said the city will further improve the positive interaction between finance, technology, manufacturing and the economy, with the aim of building an international hub for financial technology.
“Hangzhou ranked No 1 in the country for finance and technology development as well as collaborating with overseas companies to build a global hub for the internet and finance,” Wu Aiqi, a professor at Zhejiang University’s School of Management, said after Xu’s presentation.
The hometown of Alibaba also has major financial companies. Alibaba-affiliated Ant Financial, for example, received 55 patents in blockchain technology this year, along with emerging fields such as virtual reality and cloud computing. In 2016 alone, 40 fintech companies in Hangzhou received investment, with 15 getting funds from angel investors, 24 in A-round fundraising, three in A-plus and nine in B.
“Hangzhou welcomes new businesses and has set up a good business environment for startups,” Wu said, adding that the success of Alibaba and Hikvision has attracted abundant investment to the city, though investors prefer new fields like fintech. “The local government also supports industrial development,” he said.
Starting in 2016, Hangzhou has been carrying out a plan that defines specific areas for new finance companies and projects. The Xixi area, less than 5 kilometers from picturesque West Lake, is becoming a center for finance and internet development.