China and Australia have agreed to work together to strengthen ties through blockchain technology as the transactional transparency medium begins to progress further.
With Australia already making a name for itself as one of the leading countries in blockchain technology, it may come as no surprise that China would look to its Pacific neighbor to help develop its own capacity.
This has led to a series of delegates representing blockchain startups receiving invitations to Shanghai to discuss the possibility of China and Australia jointly creating new insights into large-scale transactions and supply chains through the platform.
The high-profile blockchain companies in Australia that made the list, including Labyrs, Beam and AgriDigital, arrived in Shanghai recently. The Australian Trade and Investment Commission (Austrade) and the Australian Digital Trade Commission organized the trip. Australia’s leading position will hopefully allow it to secure further investment from economic superpowers such as China, to continue its work in blockchain technology.
The visit also allowed Australian entrepreneurs to meet some of their Chinese counterparts in the fintech sector. These include Ant Financial, which is affiliated with Chinese e-commerce giant Alibaba.
Ant Financial is worth over an estimated $150bn, and Alibaba founder Jack Ma’s commercial prowess has already seen him secure an impressive $14bn of funding for AntFinancial to move further into technological solutions instead of consumer finance and payments.
Some of this investment has already gone toward blockchain projects, and this trend should continue as companies look to diversify their offerings and make the most of their capital to deliver a wider range of solutions that can increase their use to customers.
Although it is not yet known which other Chinese enterprises were present to meet the Australian startups, they all attended the Wangxiang 4th Annual Global Blockchain Summit in Shanghai last week.
The decision of the Chinese government and large entities to move toward blockchain comes at an interesting time for the nation, with all forms of cryptocurrency trading still prohibited. Although the acceptance of trading digital currencies looks to be some way off, the technology that makes it possible is far more useful for China and poses little or no threat to its economy.
This has led to the Chinese Ministry of Industry and Information Technology (MIIT) looking to promote the use of blockchain in many industry measures. MIIT now recommends blockchain technology’s implementation in sectors such as supply chain management, reporting, insurance, finance and smart manufacturing.
The Chinese Supreme Court announced last week in a landmark ruling that blockchain will even have a place in legal proceedings. It will enable the authentication of evidence in legal contexts where needed.
This all leads to the possibility of greater connections between China and Australia as both countries look to develop and work with the technology for various uses.
It would appear that Australia is working more on the development aspects and looking to set up different tests and practices around the world. It established the International Standards Organisation (ISO) technical committee that chairs and oversees blockchain development.
The technical committee chairperson, Craig Dunn, hailed China’s involvement as necessary “given the significance of their work in blockchain.”