A report released by Securities Daily explained how China’s public companies are spending the millions they have allocated to blockchain R&D. The study surveyed 23 companies in China that started using blockchain in 2016. According to figures, companies use an average of 20% of their annual turnover for such purposes. Most of these funds will be spent on other government solutions.
The report highlighted that Yuanguang Software, an enterprise software provider, has increased its related research spending by approximately $ 24.3 million since 2016. Other companies like Xinchen Technology have actively spent funds on blockchain-related government research projects to bolster the nation’s financial sector.
Chen Xiaohua, Chair of the China Mobile Communications Federation’s Blockchain Professional Committee, commented on how interest in blockchain has grown among publicly traded Chinese companies:
“On the one hand, listed companies can improve their products with the help of blockchain technology. Awareness and brand promotion, on the other hand, use blockchain technology to improve their own technological level, overcome the structural limitations of the traditional internet model and thoroughly shape the digital economy. “
According to a report entitled “2020 Blockchain Industry Development,” Chinese companies have filed 4,435 blockchain patents – more than half of all global blockchain patents. This surge in interest followed Chinese President Xi Jinping’s approval of the industry.