China has outlined plans for a national blockchain network and an integrated computing infrastructure within a broader policy framework aimed at advancing technology-driven industries and linking digital economic activity with real-world production. The proposal, detailed in a document comprising 19 measures released by the Communist Party of China Central Committee and the State Council on October 9, positions the blockchain network as part of efforts to strengthen the connection between the digital economy and traditional economic sectors. The document also calls for improvements to data ownership rules, including trials involving data markets, cross-border data mechanisms, and enhanced protection of economic interests tied to data use.

Under the policy, authorities are directed to explore mechanisms for treating data as an economic asset while upgrading national data infrastructure. The initiative is situated within a section on aligning the real economy with digital transformation, alongside measures to modernize manufacturing and expand the industrial internet. A separate component of the plan involves the development of an integrated national computing network, intended to support large-scale technological and industrial applications.

The policy also emphasizes the need for internationally competitive digital industry clusters and proposes adjustments to regulatory frameworks to encourage private investment in emerging technologies. It supports business adoption of digital tools and services, as well as the supply of digital products and platforms. Pilot programs are expected to test new models for data trading, ownership allocation, and cross-border data flows, with regional authorities already advancing related projects.

In parallel, China has expanded its digital yuan ecosystem, with the People’s Bank of China reporting that 30 banking institutions have been authorized to operate within the digital currency network as of August 17. This includes new participants such as Ping An Bank, Hengfeng Bank, and Bank of Shanghai, following approvals for eight additional operators earlier in the month. The central bank noted that these institutions had completed technical and operational requirements to connect to the digital renminbi system, with customer services anticipated once preparations are finalized.

The expansion of digital yuan infrastructure is tied to broader financial reforms, including provisions that allow verified digital yuan wallets to earn interest and receive deposit insurance protections. Non-bank payment providers are required to maintain reserve funds exclusively in digital yuan under a framework introduced earlier in the year.

Regulatory guidance on blockchain use in financial services predates this policy. In April, the State Administration of Taxation and the National Financial Regulatory Administration encouraged blockchain-based tax data sharing to improve credit assessment for small businesses, particularly those compliant with tax obligations. The notice emphasized standardized information exchange between banks, tax authorities, and enterprises to streamline lending processes.

Cross-border data initiatives are also under development. A draft plan from Guangdong’s Department of Commerce, released in August, includes trials for digital yuan applications in offshore finance, green finance, and supply chain finance within its free trade zone strategy for 2026–2030. The proposal permits multi-currency accounts and asset transfers tied to intellectual property, with public feedback accepted until September 5.

Internationally, U.S. regulatory actions have introduced new constraints on data flows involving certain jurisdictions. The Department of Justice’s Data Security Program, effective April 2025 with due diligence requirements beginning in October, restricts transfers of sensitive American data — including financial, health, and biometric records — to countries designated as “of concern,” a category that includes China, Hong Kong, and Macau. The framework applies to government-related information and bulk personal data held by covered entities.

Earlier in the year, Chinese regulators had imposed restrictions on cryptocurrency activities, including oversight of stablecoins and tokenized assets, as well as enforcement actions targeting operations that mask cryptocurrency mining under the guise of data centers. These measures remain in effect alongside the current policy developments.