China has introduced plans for a national blockchain network as part of its broader push to develop the digital economy. The initiative was outlined in a policy document released by the Communist Party of China Central Committee and the State Council and published by Xinhua. While the proposal highlights blockchain’s potential as foundational infrastructure, China’s existing prohibition on cryptocurrency transactions in the mainland remains in effect.
The document, titled “Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces,” does not directly reference Bitcoin or other independent cryptocurrencies. Instead, it focuses on wider technological and economic priorities, including manufacturing digitalization, the creation of a unified national computing-power network, and the “Eastern Data, Western Computing” initiative. That program is designed to relocate more data-processing and storage activities to western parts of the country.
Government support for blockchain infrastructure could benefit businesses and public-sector institutions developing digital systems. However, the policy should not be interpreted as a relaxation of restrictions on private cryptocurrency trading by mainland residents. China’s state-backed Blockchain-based Service Network (BSN) already provides infrastructure for commercial and government applications, while excluding cryptocurrencies such as Bitcoin from its network.
The proposed national blockchain system could potentially draw on the existing BSN infrastructure, but authorities have not confirmed that the two initiatives will be connected. The policy also warns against allowing virtual economic activities to take precedence over the real economy or fueling speculative bubbles. This indicates that Beijing is emphasizing practical blockchain applications tied to manufacturing and other productive industries rather than unrestricted token speculation.
Blockchain technology is also being explored for applications such as atomic settlement of tokenized assets and compliance controls for on-chain financial products. These developments, however, offer no definitive indication of how China’s proposed network will be structured or which organizations will participate.
Conflux Gains as Markets React to Beijing’s Blockchain Push
China’s latest policy announcement sparked renewed interest in Conflux, a blockchain project associated with the country, according to IBTimes. The CFX token began rising on Saturday morning and climbed above $0.07 at its peak on Sunday. At 8:00 a.m. EDT on October 11, the token was trading around $0.066, more than 26% higher than its previous close.
Some market participants regard Conflux as China’s only regulatory-compliant public blockchain. That perception stems from its work with state-backed corporations, its approach to cryptocurrency token sales that fall outside China’s permitted regulatory framework, and the professional and academic backgrounds of its founders, who have connections to state-run Tsinghua University.
Despite the market reaction, the policy document does not name Conflux as the developer or operator of the proposed national network. It also provides no indication that CFX will be adopted as the system’s token. The rally therefore appears to reflect expectations about a potential benefit from Conflux’s China-related positioning, rather than confirmation of an official government decision.
China-focused developments can quickly attract speculative capital to related digital assets. A stronger long-term case for Conflux would require concrete evidence of participation in government-backed trials, the development of official technical standards, or deployment within national infrastructure. None of these outcomes has been confirmed by the latest announcement.
The reported price action placed CFX near $0.066 at 8:00 a.m. EDT on October 11, following an earlier move above $0.07. Traders will now be watching whether interest in the China blockchain narrative can sustain the token’s gains after the initial reaction to the news.
For now, the policy signals that blockchain remains part of Beijing’s digital-economy agenda, but important implementation details are still missing. Until authorities clarify the network’s governance, technical standards, and participating organizations, there is no verified basis for concluding that Conflux has been selected for a role in China’s national blockchain initiative.
