China Pushes National Blockchain Development Amid Wider Crypto Strategy Shift

China is moving to expand its blockchain infrastructure as part of a wider effort to develop its digital economy. Plans for a national blockchain network were outlined in a policy document issued by the Communist Party of China Central Committee and the State Council and published by Xinhua. The move signals Beijing’s interest in blockchain technology, but it does not change the existing ban on cryptocurrency transactions in mainland China.

The document, titled “Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces,” makes no direct reference to Bitcoin or other independent cryptocurrencies. Instead, it sets out several broader priorities, including digitizing manufacturing, creating a nationally integrated computing-power network, and advancing the “Eastern Data, Western Computing” initiative. The program is intended to shift more data-processing and storage capacity toward western China.

Greater government support for blockchain could create opportunities for enterprise technology providers and developers of public-sector digital systems. However, it should not be mistaken for a relaxation of restrictions on private cryptocurrency trading. China’s state-backed Blockchain-based Service Network (BSN) already serves government and commercial users, while excluding cryptocurrencies such as Bitcoin from its infrastructure.

It has not been confirmed whether the proposed national network will be built on BSN or developed as a separate system. The policy provides no specific technical details connecting the two. It also warns against allowing virtual economic activities to take priority over the real economy or creating speculative bubbles. These provisions indicate that Beijing’s focus is on applying digital technology to manufacturing and other productive sectors, rather than opening the door to unrestricted token speculation.

Blockchain-based services could include atomic settlement for tokenized assets and compliance tools for financial products operating on-chain. Nevertheless, these examples do not establish how the planned national network will function or which organizations will operate it.

Conflux Token Climbs as China’s Blockchain Plans Attract Attention

China’s announcement has drawn fresh investor attention to Conflux, a blockchain project associated with the country, according to IBTimes. CFX began rising on Saturday morning and climbed above $0.07 at its Sunday high. By 8:00 a.m. EDT on October 11, the token was trading at around $0.066, up more than 26% from the previous close.

Some market participants describe Conflux as China’s only regulatory-compliant public blockchain. This reputation is linked to the project’s work with state-backed corporations, its approach to cryptocurrency token sales restricted under China’s rules, and the professional and academic connections its founders have with state-run Tsinghua University.

However, the policy document does not identify Conflux as the developer or operator of the proposed national network. It also does not confirm that CFX will be used as the system’s token. The recent rally therefore reflects investor speculation about a possible connection to Beijing’s blockchain strategy, not an official selection or confirmed integration.

Announcements tied to China’s technology agenda can quickly generate speculative demand for related digital assets. For Conflux to establish a more substantial long-term case, evidence would be needed that it has a role in official pilot programs, technical standards, or deployed government infrastructure. No such role was confirmed in the announcement.

CFX was reported near $0.066 at 8:00 a.m. EDT on October 11, after briefly trading above $0.07. The token’s next move may depend on whether investors continue to support the China-related narrative after the initial reaction fades.

Beijing’s announcement reinforces the importance of blockchain within its digital-economy plans, but major questions remain about implementation, governance, technical requirements, and participating organizations. Until officials provide further details, the policy should be viewed as a signal of broader infrastructure development—not proof that Conflux has been selected to participate in China’s national blockchain network.