President Xi stresses importance of core blockchain technology

 Chinese President Xi Jinping said the country should accelerate the development of blockchain technology, regarding it as a crucial breakthrough for the self-innovation of core technologies.

In a study session of the Communist Party of China Central Committee Political Bureau on the development and trend of blockchain technology on Thursday, Xi underscored the importance of blockchain technology in the new round of technological innovation and industrial transformation, urging more efforts to hasten the development of the sector, the Xinhua News Agency reported.

Blockchain technology refers to a digital database containing information that can be simultaneously used and shared within a large decentralized network. It has rapidly developed around the world in recent years.

"This is the first time that China's top leader stressed the significance of blockchain technology by singling it out. Previously, it might have been mentioned together with other newly emerging technologies such as artificial intelligence (AI) and big data," said Cao Yin, an expert in the blockchain sector.

Cao told the Global Times on Friday that he felt inspired by President Xi's guidance in the blockchain sector. "It indicates that blockchain technology has become a battleground that global players will compete in, and it is important for China to turn into a cyber power and digital power."

Research on blockchain standardization should be strengthened, and China should enhance its discourse power and rule-making power in the international community, Xi said.

A blockchain industry ecology should be created and the technology integration should be accelerated for frontier information technologies such as AI, big data and the Internet of Things, Xi pointed out. Deep integration between the blockchain and the real economy should also be promoted to solve the problems of financing for small- and medium-sized firms, he said.

Meanwhile, the development of blockchain technology should be guided.

Blockchain technology has been lackluster since it was intertwined with initial coin offerings (ICO) and virtual currency.

Chinese authorities ordered a ban on ICO in 2017 and stopped direct bitcoin-yuan trading as the rapidly expanding market spawned concerns over financial risks. "Since then, we can see that some tech giants, including BAT (Baidu, Alibaba and Tencent), have downplayed their research and development in the area, but some small private firms are still moving ahead," Cao noted.

China has been in close cooperation with the world's leading blockchain community, mainly found in Europe, Cao said.

China launched a nationwide blockchain-based service network last week, aiming to improve the layout of the blockchain sector and serve the development of smart cities and the digital economy.

NASDAQ-listed Chinese desktop software and blockchain-related company Xunlei saw its shares surge by 47 percent during Friday's trading as of press time.