China is advancing plans for a national blockchain network as part of its wider strategy to expand the digital economy. The initiative was outlined in a policy document issued by the Communist Party of China Central Committee and the State Council and published by Xinhua. Although the proposal signals official support for blockchain infrastructure, the country’s ban on cryptocurrency transactions in mainland China remains unchanged.
The document, “Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces,” does not explicitly mention Bitcoin or other independent cryptocurrencies. Instead, it emphasizes broader technological priorities, including the digital transformation of manufacturing, the development of an integrated national computing-power network, and the “Eastern Data, Western Computing” initiative, which directs more computing and data-storage operations toward western China.
Beijing’s backing for blockchain technology could create opportunities for businesses and government institutions seeking to build digital infrastructure. However, the initiative does not grant mainland residents permission to trade private cryptocurrencies. China’s existing state-supported Blockchain-based Service Network (BSN) provides infrastructure for government and enterprise applications but does not allow cryptocurrencies such as Bitcoin to operate on its network.
It remains unclear whether the proposed national blockchain network will incorporate or build upon BSN. The policy document does not establish a direct connection between the two systems. It also cautions against allowing virtual economic activity to displace the real economy or encouraging speculative bubbles. These warnings suggest that the government intends to prioritize blockchain applications that support manufacturing and other productive industries instead of unrestricted speculation in digital tokens.
Potential blockchain use cases include atomic settlement for tokenized assets and compliance mechanisms for on-chain financial products. However, these examples do not reveal which technologies, operators, or governance arrangements China will adopt for its proposed national network.
Conflux Rises as Investors Bet on China’s Blockchain Agenda
China’s announcement has renewed market interest in Conflux, a blockchain project associated with the country, IBTimes reported. CFX began gaining ground on Saturday morning and climbed above $0.07 at its Sunday peak. At 8:00 a.m. EDT on October 11, the token was trading near $0.066, up more than 26% from the previous close.
Some investors consider Conflux to be China’s only regulatory-compliant public blockchain. This reputation is linked to its work with state-backed corporations, its approach to token sales that are restricted under China’s cryptocurrency rules, and its founders’ professional and academic connections to state-run Tsinghua University.
However, Beijing’s policy document does not identify Conflux as the operator of the proposed national blockchain network. It also makes no reference to CFX being adopted as the network’s native token. As a result, the token’s rally reflects market expectations about a possible connection between Conflux and China’s blockchain development plans, rather than a confirmed government endorsement or integration.
Policy announcements involving China can quickly drive speculative demand for related cryptocurrency projects. For Conflux, a lasting fundamental catalyst would require evidence that it is participating in official pilot programs, helping establish technical standards, or supplying infrastructure for an implemented government initiative. The latest policy document confirms none of these developments.
CFX was reported near $0.066 at 8:00 a.m. EDT on October 11, after trading above $0.07 earlier in the session. Its near-term direction may depend on whether investor enthusiasm for its China-related positioning persists beyond the initial news-driven move.
Until officials disclose more about the proposed network’s implementation, governance, technical requirements, and participating organizations, the announcement should be treated as a broader endorsement of blockchain infrastructure rather than proof that Conflux has been selected. The project’s potential involvement remains unconfirmed.
