The Chinese National Blockchain Technology Innovation Center has begun operating. The center will collaborate with local universities, think tanks, and blockchain companies to develop distributed ledger technology (DLT) and train specialists in China. 
The National Blockchain Technology Innovation Center (NBTIC), led by the Beijing Microchip Blockchain and Edge Computing (BABEC) Research Institute, has been officially launched. This was reported by the local media.
The center was approved by China’s Ministry of Science and Technology in February 2023 and is located in Beijing’s national innovation demonstration zone, Zhongguancun. The PRC government plans to train more than 500,000 high-level specialists in distributed registry technology at the center.
According to Zheng Zhiming, Professor at the School of Mathematics and Systems Science at Beihang University (BMSS), the goal of the Chinese innovation center is to connect different uses of blockchain in the country — so-called “blockchain islands” — into a single network. Dong Jin, Director of the National Blockchain Technology Innovation Center, argues that the initiative will overcome technical obstacles in the field and solve problems of data security and reliability. Moreover, he believes that the center will be able to strengthen the security of the national digital economy.
As intended by the PRC government, the National Blockchain Technology Innovation Center will actively develop ultra-large-scale clusters of computing power to support blockchain networks and build a national network of computing power that connects core and industry node networks in order to improve overall network performance. This digital infrastructure will serve key sectors of the national economy, including cross-border trade, supply chain finance, energy, manufacturing security, and food processing.
The PRC accounts for 84% of all blockchain technology patent applications filed worldwide, with about 1,400 blockchain companies based in Mainland China. China’s government also announced plans to become a leader in the virtual reality industry.

China Is Potentially Leader in Blockchain Development

China accounts for 84% of all blockchain technology patent applications filed worldwide. But there’s one nuance. 
The China State Council’s Patent Office receives 84% of all blockchain technology patent applications. The South China Morning Post reports this, citing Wang Jianwei, deputy director of the Ministry of Industry and Information Technology. 
According to closed reports from 01Caijing and PatSnap, China’s blockchain patent applications accounted for nearly 60% of the global number from 2015 to June 2021. The U.S. and South Korea ranked second and third, respectively.
The thing is that the approval rate for such applications is extremely low in China. Only 19% of all applications are approved, while applications from the U.S. and South Korea are approved at 26% and 43%. 
At the same time, China continues actively developing its digital yuan program. The central bank digital currency (CBDC) has recently expanded to four more provinces, increasing the number of potential users by 360 million. 

China Strengthens Leadership in Blockchain Development

China is one of the world’s leaders in blockchain development. According to the latest data, about 1,400 blockchain companies are based in mainland China.
According to the Whitepaper 2022 Blockchain report published by the China Academy for Information and Communications Technology (CAICT), about 1,400 different blockchain companies are operating in the country. The report indicates that around 52% of all blockchain firms are located in China and the United States. 
CAICT representatives also said blockchain technology was a priority area for the country’s future development. For example, over 48 post-secondary institutions in China introduced “blockchain engineering” degrees into their curricula in 2022. Besides, the Japanese government is interested in training skilled personnel for digital transformation and is opening specialized courses at universities.
The report indicates that there are several promising areas for blockchain technology development in the PRC right now:

• “Settlement chains.” The technology will allow large Chinese firms such as China Mobile and China Unicom to provide transparent data on telecom fees.
• Logistics. Blockchain technology will enable Chinese consumers to verify the source of products entering the market by scanning QR codes.
• International economic relations. Using cross-border payment platforms such as Trusple can help local buyers and sellers get proper information about their foreign counterparties.
• Financial sector regulation. Various blockchain-based monitoring platforms can help financial regulators quickly identify irregularities between various exchanges.

Recall that China has the potential to become a leader in blockchain development. The country accounts for 84% of the world’s blockchain technology patent applications. In November 2022, the Chinese government announced ambitious plans to become a leader in VR technology. Moreover, China recently made another step to create a domestic NFT market by announcing the China Digital Asset Trading Platform, expected to be officially launched on January 1, 2023.