China's seven departments issued the "Opinions": requiring the integration of Blockchain and Artificial Intelligence into financial infrastructure!

Recently, the People's Bank of China (Central Bank) joined hands with six core ministries including the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, the Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange to jointly issue the "Guiding Opinions on Financial Support for New-type Industrialization" (hereinafter referred to as the "Opinions"). This document, jointly endorsed by seven departments, sets the tone for the integration of production and finance in China for the coming years with unprecedented strength and clarity. The most striking aspect is the explicit requirement to elevate Blockchain and cutting-edge technologies such as Artificial Intelligence (AI) to the strategic height of "financial infrastructure," aiming to create a new digital engine for the upgrading of China's manufacturing industry and the development of the real economy.

The release of this "Opinion" marks China's transition from fragmented exploration to a national strategy level of top-level design and comprehensive promotion for the application of Blockchain and AI technology. Its core objective is to utilize these digital tools to fundamentally transform the traditional financial service model, addressing the long-standing issues of financing difficulties and slow financing that have plagued the manufacturing industry, especially small and medium-sized enterprises, thereby providing solid support for the grand goals of achieving a "strong financial nation" and a "strong manufacturing nation."

Core Command

This lengthy "Opinion" puts forward a total of 18 specific measures, the core spirit of which can be summarized as: guiding financial resources to precisely drip into the key areas of "new industrialization," and promoting the transformation of China's manufacturing industry towards "high-end, intelligent, and green". Among the many tools to achieve this goal, "digital finance" is given a crucial role.

Article 7 of the "Opinions" states, "Strengthen digital financial empowerment and promote the deep integration of the digital economy with the real economy," and issues specific instructions to financial institutions in an unusually clear tone: "Support financial institutions in using technologies such as big data, Blockchain, and artificial intelligence to simplify business procedures and improve service efficiency for the manufacturing industry, especially small and medium-sized enterprises."

This statement officially transforms Blockchain and AI from an optional "add-on" into the "infrastructure" that financial institutions must build to serve the real economy. The document further requires that financial institutions strengthen medium- to long-term loan support for the construction of digital infrastructure such as 5G, industrial internet, data, and computing power centers, and promote banks to build digital industrial financial service platforms.

If the "opinions" propose grand strategic goals, then Blockchain and AI are the two core technological engines for achieving this goal. The document is not just a slogan; it outlines a clear blueprint for the specific application scenarios of these two technologies.

1. Blockchain: Building a trustworthy "data credit" and "object credit". For a long time, small and medium-sized enterprises have faced difficulties in financing, primarily due to their opaque credit, making it hard for banks to assess risks. The decentralized, immutable, and traceable characteristics of blockchain technology are powerful tools to solve this trust issue. In the field of supply chain finance: The "Opinions" propose to "deepen financial services in the industrial chain," encouraging financial institutions to provide accounts receivable, inventory, warehouse receipts, and order financing services for small and medium-sized enterprises (SMEs) on the chain based on "data credit" and "object credit." Blockchain can transmit the credit of core enterprises in the supply chain to upstream and downstream SMEs. Once an accounts receivable is confirmed on the chain, its authenticity is difficult to tamper with, effectively eliminating the risks of false trade, duplicate pledges, and other issues that may exist in traditional models, allowing banks to confidently provide financing to SMEs. In the field of green finance: For scenarios requiring strict verification, such as carbon emission trading and green manufacturing, blockchain can make the recording and verification processes of carbon footprints, environmental protection data, and other information completely transparent and traceable throughout, greatly reducing trust costs and regulatory costs.

2. Artificial Intelligence: Achieving precise risk assessment and capital allocation. AI plays the role of the "smart brain," capable of processing massive amounts of unstructured data to uncover credit information that traditional risk control models struggle to capture. Smart Risk Control: AI can combine big data and smart contracts to analyze multidimensional data such as cash flow, inventory, production capacity, and water and electricity usage of enterprises in real time, establishing more accurate and dynamic credit evaluation models. This allows banks to break free from excessive reliance on collateral and be bold enough to provide loans to technology-based SMEs with light assets. Efficiency Improvement: For banks, the application of AI can shorten the loan approval time from several weeks to just a few days or even hours, while significantly reducing the bad debt rate. For enterprises, the efficiency of capital turnover and order scheduling will be able to align more closely with actual market demand.

New Industrialization

At this time, the seven major departments jointly issued the "Opinions", which is backed by profound domestic and international backgrounds and long-term national strategic considerations.

First of all, there is an urgent need to enhance the resilience and security of the industrial chain and supply chain. Against the backdrop of increasing geopolitical uncertainty, ensuring the "self-controllability" of key core technologies and important industrial chains has become a national strategy for China. The "Opinions" clearly propose to strengthen comprehensive financial services for key industrial chain leading enterprises and important supporting enterprises, precisely to respond to external challenges and enhance the inherent resilience of Chinese industry.

Secondly, this is an inherent requirement for developing "new quality productivity" and promoting economic transformation and upgrading. The core of "new industrialization" is to break away from the old model that relied on low-cost factor inputs and shift towards a new model led by technological innovation. By accurately directing financial resources towards the fields of technological innovation and industrial upgrading, and preventing funds from engaging in "involution" competition in low-level areas, it is the only way to achieve high-quality economic development.

Finally, this also reflects China's attitude towards technologies such as Blockchain - firmly "shifting from virtual to real". Unlike some countries that waver in the wave of cryptocurrency speculation, China's policy path is very clear: to severely crack down on virtual currency speculation, but unwaveringly promote Blockchain as a core technology to serve the real economy.

Industrial and Financial Transformation

The "Guiding Opinions" jointly released by the seven major departments of China is not just an ordinary policy document; it resembles a call to action, announcing the formal launch of a profound industrial and financial transformation led by national will. Elevating Blockchain and AI to the level of "financial infrastructure" means they will play a fundamental role in the future financial system, akin to water, electricity, and the internet.

The impact of this transformation will be profound. After the Trump administration came to power, geopolitical uncertainty increased. At this time, China is making significant moves to bet on Blockchain and AI, not only aiming to strengthen industrial resilience but also as a key move to reshape its core competitiveness in the context of increasingly fierce global technology and industrial competition.