Not everything is lost yet – something like this can characterize the current state of the Chinese economy health against the backdrop of a protracted trade war with the United States. Despite all the hardships, the communist regime, led by Xi Jinping, remains committed to making its economy the largest in the world with the help of technology, including blockchain.
Moreover, the Celestial Empire not only longs for dominance in the existing financial order, but also intends to take a leading position in the development of blockchain and economy digitalization.
The government is still skeptical of bitcoin and other decentralized digital assets, but this does not prevent the country from remaining one of the most influential in the cryptocurrency space.
Take, for example, the fact that it is the Chinese mining pools that control almost three quarters of the hash power in the bitcoin network.
2020 could be a turning point – The trade war with the United States and a number of other problems have led to a slowdown in China’s economic growth observed in recent months. For example, only the effect of a reduction in exports (due to the trade war) in the outgoing year deprived the whole 1.3% of GDP.
But in the coming year, the situation in the country can change for the better by using innovative technologies and infrastructure aimed at reviving economic growth.
Thus, China has an ambitious project involving the construction of dozens new supercities, which can spur GDP growth, which now stands at about 6% and has been minimal since 1992.
Given that the population in two dozen of these cities will exceed the number of New Yorkers, these supercities will entail a new wave of rural population migration. Already, the country boasts a vast industrial ecosystem, and the influx of cheaper labor can give a fairly powerful impetus to offset the negative effects of an aging population.
Of course, this is just one example of how new infrastructure projects can affect the health of the economy in the coming year. But technology is also able to make a significant contribution to the process of revitalizing growth.
Blockchain, cryptocurrencies and mining as growth drivers – The growing blockchain revolution is inspiring the country’s government to reduce cooperation with Western technology companies, especially those based in the United States.
How this will affect the development of China in the long term, time will tell, but the fact that the Celestial Empire is perhaps the only large economy that has long noted the strategic potential of the blockchain and its branches, including cryptocurrencies, cannot be denied.
Despite the ban on bitcoin trading, the country is the undisputed world leader in mining this cryptocurrency. Moreover, the influence of local miners on the bitcoin network can grow even more, as more and more companies come to Sichuan, which attracts players with cheap electricity. Without the approval of the authorities, of course, this would not have happened.
In addition to blockchain and digital currencies, the Chinese government is also actively investing in the 5G system, expecting high payback ratios in the long run.