8 trends in China's digital and blockchain economy in 2021

China faces significant domestic digital demand seen across industries in 2020. To satisfy the harmonious development of the state within the framework of the model of the double cycle, it was decided to pay maximum attention to digital transformation, modernization and development of the economy.

The main challenge facing China today is to stimulate domestic demand. This is a key and highly ambitious development direction for 2021.

From a market point of view, the expansion of domestic demand requires constant maintenance of the quantity of products without loss of quality. Both of these aspects need digital technology to support them.

Digitalization will improve the supply and shape a new digital consumption market. This challenge will become an important area of ​​traditional industry innovation in the coming year.

Plans for 2021 and their implementation

By leveraging the Internet, Chinese businesses will increasingly conquer the digital landscape in 2021, shaping new operating models for products and services. This will enable Chinese industry to begin the digital transformation of global manufacturing.

One of the innovations this year should be the symbiosis "5G + Industrial Internet". It will seamlessly link telecommunications and industrial operations, and form a new model of business collaboration.

Technological infrastructure will see new types of cloud and edge computing, blockchain infrastructure serving the credit system, and artificial intelligence infrastructure used in financial, transportation and other fields.

Main development trends of China for 2021

The Chinese government will focus on the following trends to implement its plans:

  1. Additional funding for digital cities and villages. This will create many innovative business models.
  2. Rural revitalization and development. A blockchain system for lending to farmers will appear, on the basis of which a unified digital financial system will be created. This will allow you to painlessly go through the stage of industrialization and move to the digital stage of agricultural development.
  3. Improving the Industrial Internet. A new ecology of the digital industry will emerge based on digitalization. Due to this, the rate of industrial development will double.
  4. Transformation and renewal of the consumer Internet platform. Emphasis will be placed on standardizing operations and rigorous monitoring of financial enterprises to avoid systemic risks.
  5. Development of a financial system based on work with Big Data, blockchain and artificial intelligence technology. New methods of dealing with the disorderly growth of capital will emerge. Maximum attention will be paid to the triad “traditional industry + digital technologies + financial innovations”.
  6. Data item marketing. Data sharing will be an important emerging industry in 2021. This will require careful analysis, regulation and prevention of transactional risks.
  7. Establishing new industrial relationships that meet digital productivity needs. Their main characteristics are data transparency, identity of characteristics and personnel reliability. This model of social and industrial organization will become widespread in 2021 and become a world leader.

Explore new data-driven models of social and economic governance. On their basis, China will form GovernTech technologies for global digital governance.

These tasks are in the plans of the Chinese Government for 2021. It is gratifying that along with the development of digital technologies, a lot of attention is paid to the blockchain. The adoption of cryptocurrencies is growing, which affects the stability of the ecosystem. Everyone wins!