July 30, 2020
Another Chinese province reported that it is about to launch a blockchain-powered cross-border financial service platform.
Per Haiwainet, Guizhou Province, in China’s mountainous southwest, will launch the initiative this month.
The province’s foreign exchange administrator is the platform’s mastermind. The administrator stated that it has been working on the project with the Guizhou branches of state-owned banking giants, including policy bank the Export-Import Bank of China.
The province said the platform will allow “private, small, medium and micro businesses” support when making cross-border transactions by providing faster, more effective, paper-free financing for foreign trade deals.
Smaller companies typically need to rely on banks to help with the financing their international trade deals. They also need to apply for customs clearance. This typically involves a long, drawn-out process – much of which is paper-based and involves face-to-face contact.
The operators of similar initiatives in other Chinese provinces said that in many cases, they have managed to cut down month-long processes to seven days or under.
Guizhou said that the move will also help cut down on fraudulent and error-ridden financing practices, with greater transparency and traceability.
The province’s population is around 35 million, and it has become the focus of a massive investment boost in recent years. In 2017, its provincial governor unveiled plans to construct 10,000km of motorways, 600km of canals, and 4,000km of high-speed railways – as well as 17 airports.
Guizhou also has thriving mining and agricultural sectors, and exports coal, timber, and tobacco.