Huawei has just signed an agreement with the government of the Nanshan District of Shenzhen, Southeast China. The agreement is to have the Chinese tech giant help speed up the adoption of Blockchain, Big Data, and 5G networking.
This move will also strengthen China’s Digital Currency economy and also serve as a connection between China and Hong Kong. Furthermore, Huawei will collaborate with the People’s Bank of China to begin the testing of its own virtual currency in Shenzhen with leading commercial banks in 2020. Despite Bitcoin being banned in the country since 2017, China reportedly sees great potential in its supporting infrastructure, Blockchain.
The Southeast Asian region is often seen as a technological hub, so it comes as no surprise that China wishes to expand its digital horizons. Notably, Shenzhen is also the site where a model for the semiconductor business will come up. China already is one of the leading nations when it comes to 5G adoption, thanks to Huawei in part with its industry leading equipment and infrastructure.
Thus, growing involvements in the digital spheres between the electronics company and China will strengthen both sides. The applications of digital currency through Blockchain also have a very wide field of applications including, and not limited to, Healthcare.
Shenzhen as a pivotal city for China’s blockchain development
The announcement of the strengthening of Shenzhen as a blockchain-friendly city in the country, considered as the commercial connection point between Hong Kong and China, realizes the importance it has for the national government in the development of such technology.
As Cointelegraph reported last year, Huawei signed a strategic cooperation agreement with the People’s Bank of China (PBoC). Although limited details were made public, the telecommunications giant has been developing measures to strengthen the adoption of blockchain in the country.
In April 2018, Huawei launched its Hyperledger-based blockchain-as-a-service platform, Blockchain Service.
Chinese government and Huawei partnerships in the past
Also, the PBoC announced in September that it had started testing its digital currency in Shenzhen, in conjunction with Huawei and some of the biggest commercial banks in China.
As of press time, Huawei has not released a statement formalizing the announcement of the agreement with the Nanshan government of Shenzhen, nor has it issued additional comments on the matter.
The construction of this industrial zone is crucial for the local government in driving its industrial development. In September 2019, the Shenzhen government signed an agreement with Huawei, to transform the city into a demonstration area for China’s server chip industry.
Commenting on this partnership, Wang Qiang, secretary of the Nanshan District committee said the agreement is crucial for the economic growth of the Nanshan, which is considered as an innovative technology district. He added that Huawei is expected to play to its global industry and tech advantage to build a national Kunpeng industrial and ecological chain.
According to the president of Huawei’s intelligent computing business unit, Ma Haixu, the company focuses on computing architecture innovation and builds core competitiveness of the computing industry on Kunpeng processes. Ma added that, the company will accelerate new-generation IT development in Shenzhen and help it develop into a key financial eco-base that will also become a national benchmark.
Shenzhen, which serves as a link between Hong Kong and China, is considered to be the country’s largest technology center. This is where Huawei grew from a small provider of telephone switches to one of the world’s largest telecommunications giants with European-style campuses just outside the city.
As reported by U. Today, the People’s Bank of China (PBoC) has partnered with Huawei to begin testing its own digital currency in Shenzhen and Suzhou in collaboration with major commercial banks in 2020.
China’s central bank digital currency pilot will involve a multitude of industries, including healthcare.
Take the chance
China has not yet changed its belligerent attitude towards Bitcoin. Cryptocurrency has been banned here since September 2017, despite the fact that the country is responsible for 66% of the total share of mining.
However, the blockchain, the technology behind Bitcoin, holds great promise for the communist state. In October, President Xi Jinping said they had to seize the opportunity offered by the blockchain, which sparked a huge crypto rally.
In 2019, China accounted for 22% of all blockchain-related VC transactions