Free trade zones encourage use of blockchain applications

Several free trade zones (FTZs) in China aim to apply blockchain in various sectors, with a focus on blockchain-based transactions to improve administrative efficiency, enhance trade convenience and increase mutual trust among companies.

The China (Jinan) Pilot Free Trade Zone in East China’s Shandong Province has granted the first digital business license for blockchain-based storage and information transmission, Zheng Deyan, deputy mayor of Jinan, recently said at a forum.

Next, the city will promote the development of application scenarios for blockchain and other new technologies and encourage companies in the FTZ to use blockchain, Zheng said, the Securities Daily reported.

In the Jinan FTZ, a smart approval management system based on blockchain and big data was launched in October, meaning that entrepreneurs don’t have to go to a government agency in person to register companies.

Within one month, 1,421 new companies had registered in the FTZ, the Securities Daily said.

Blockchain can be widely used in government administration, such as the management of licenses and certificates, the newspaper said, noting that the technology helps improve efficiency and quicken the approval process.

In September 2018, the FTZ in South China’s Hainan Province launched a blockchain pilot zone, encouraging companies to be bold in innovation and application to achieve a dominant position in the blockchain industry.