Former Chinese Minister of Science and Technology says Blockchain technology is still too young

The former official believes that China is not yet far ahead of the United States in the development of Blockchain technology.

Wu Zhongze, a former Chinese Vice Minister of Science and Technology and a well-known expert on the digital economy, believes that Blockchain technology is still very young.

During an interview for The Paper, the former minister also stated that there was still „not much difference between China’s position and major economies such as the United States and Europe“ in terms of the development of blockchain-based ecosystems.

Wu noted, however, that China has improved in several sectors that are necessary for blockchain development, including hardware manufacturing, platform and security services, investment in industry, and financial development, he added:

„With the innovative development of technology and the blockchain industry, its application is accelerating and the scale of the industry continues to grow. This field is expected to become a new economic growth point in the future“.

In what he called the „rapid advancement“ of China’s blockchain infrastructure, the former minister said that distributed technology will provide new opportunities to integrate and develop new technologies such as 5G, artificial intelligence, data centres and the industrial Internet.

A recent report by Securities Daily explained how China’s publicly traded companies are spending the millions they have allocated to research and development of Blockchain technology.

The study surveyed 23 companies in China that began working with such technology in 2016. The figures suggest that companies allocate an average of 20% of their annual revenues for this purpose. Most of these funds are spent to promote government-related solutions.