China Unveils 3-Year Action Plan to Expand IT Consumption, Blockchain

A joint release by the Chinese National Development Commission (NDC) and the Ministry of Industry and Information Technology (MIIT) unveiled a The Three-Year Action Plan to Expand and Upgrade Information Consumption (2018-2020)

The official MIIT website said the action plan's primary concern is the application of information technology (IT) in the real economy. This includes financial technology (fintech), blockchain algorithms, and other businesses. The announcement signals that the government is serious about using blockchain and IT as a tool instead of a distinct economic segment.

 “At present, China's economy has shifted from a high-speed growth stage to a high-quality development stage,” MIIT said. “Along with the continuous improvement of the income level of residents and the profound changes in the consumption structure, the total consumption demand in China has rapidly increased, and the structure has continuously moved to the high end, and the fundamental role of economic development has become increasingly prominent.”

The MIIT added the action plan forms part of the National Congress’ initiative to improve domestic consumption. According to the document, the government is targeting to raise the scale of IT-related consumption to $46.5 billion with a sustained 11% average annual growth by 2020. China is looking to roll-out a 4G network in at least 98% of Chinese villages during the same period.

The action plan stresses four main directions. These are information services, new information technology supplies, improvement of information technology’s business environment, and consumption willingness building. It also urges the private and institutional consumption of internet of things (IoT) services, intelligent communication devices such as AI/AR products, and industrial equipment like high-tech screens and autonomous driving components.

Both the MIIT and the NDC noted that the information consumer group in China is expanding rapidly with the boundaries extending as well. It added that the consumption concept is also accelerating as experience points to dramatic improvements.

“This has effectively promoted the deep integration and innovation of the new generation of information technology and economic and social fields, and promoted the digital transformation of traditional industries and expanded the digital economy. However, the development of information consumption is also faced with a series of problems and challenges such as high-end and effective supply shortage, the consumption potential of some regions has not been fully released, and the consumption environment needs to be optimized,” the MIIT announcement added.

Last week, the Bank of China (BOC), one of the four largest banks in the country, said it plans to raise spending for technological research with blockchain. BOC Chief Information Officer Liu Qiuwan said the bank would increase its research and development allocation for fintech projects.