China Expands Crypto Strategy as Beijing Supports National Blockchain Network

China has outlined plans involving a national blockchain network as part of its broader digital-economy strategy. The proposal was included in a policy document issued by the Communist Party of China Central Committee and the State Council and published by Xinhua. Although the document highlights blockchain’s role in expanding the digital economy, mainland China’s ban on cryptocurrency transactions remains unchanged.

The policy paper, titled “Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces,” does not specifically mention Bitcoin or other independent cryptocurrencies. Instead, it outlines a wider development agenda that includes digitizing manufacturing, establishing a nationally integrated computing-power network, and advancing the “Eastern Data, Western Computing” initiative. The latter aims to shift more data storage and computing resources to China’s western regions.

Beijing’s backing for blockchain infrastructure could open opportunities for government agencies and businesses developing enterprise applications. However, this support should not be interpreted as authorization for mainland residents to trade privately issued cryptocurrencies. China’s existing state-backed Blockchain-based Service Network (BSN) already facilitates government and commercial applications while excluding cryptocurrencies such as Bitcoin from its infrastructure.

The proposed national network could potentially build on the existing BSN framework, although no official confirmation has established such a connection. The policy document also warns against allowing virtual economic activity to overshadow the real economy or encouraging speculative bubbles. This suggests that Beijing’s priority is to integrate digital technologies into manufacturing and other productive sectors rather than permit unrestricted speculation in crypto tokens.

Other blockchain-related developments include atomic settlement for tokenized assets and regulatory safeguards for on-chain financial products. However, these applications do not establish the technical design or operating structure of China’s proposed network.

CFX Rallies as Investors React to China’s Blockchain Plans

Investor attention toward China-linked blockchain project Conflux increased following the announcement, according to IBTimes. The CFX token began climbing on Saturday morning and rose above $0.07 at its Sunday highs. By 8:00 a.m. EDT on Sunday, October 11, it was trading near $0.066, representing a gain of more than 26% from the previous close.

Conflux is widely viewed by some market participants as China’s only regulatory-compliant public blockchain. This perception is associated with the project’s work involving state-backed corporations, its approach to cryptocurrency token sales that are not permitted under China’s regulatory framework, and its founders’ professional and academic connections to state-run Tsinghua University.

Nevertheless, the policy announcement does not identify Conflux as the operator of the proposed national blockchain network. It also contains no confirmation that CFX will serve as the network’s native token or otherwise be integrated into the project. The price increase therefore reflects investor expectations surrounding Conflux’s perceived connection to China’s blockchain ambitions, rather than a confirmed government appointment or technical partnership.

China-related narratives can generate rapid speculative interest in cryptocurrency markets. For Conflux to establish a more durable fundamental case, however, evidence would need to emerge of its involvement in official pilot programs, technical standards, or deployed national infrastructure. The policy announcement itself provides no such confirmation, although it reinforces blockchain’s place in China’s broader digital-economy development plans.

At approximately 8:00 a.m. EDT on October 11, CFX traded near $0.066 after briefly moving above $0.07. The token’s subsequent performance may depend on whether investors continue to value its perceived China-related positioning after the initial headline-driven rally.

Until Chinese authorities provide details about implementation standards, governance arrangements, or participating networks, the announcement should be viewed as a significant signal of infrastructure policy—not proof that Conflux has secured a role in China’s proposed national blockchain system.

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