China to explore the use of blockchain technology to promote the “on-chain” of key data

China applied privacy computing to the sharing of credit information to reduce the risk of information leakage. The country will explore the use of blockchain technology to promote the “on-chaining” of important data and realize data encryption processing and process flexibility.

Li Chunlin, deputy director of the National Development and Reform Commission (NDRC), said that the Commission had applied privacy computing to the sharing and application of credit information to reduce the risk of information leakage. A 2024 study revealed that China attached great importance to the development of blockchain technology, listing it as a key area of ‘national cutting-edge technology layout’ and encouraging local governments to actively explore its application potential, aiming to use the characteristics of blockchain technology to improve the efficiency, transparency, and security of government services.

China’s Cyberspace Administration (CAC) regulations require all blockchain companies to register their users and to provide personal data and activity sheets to the authorities upon request. 

According to the Data Security Management Regulation, incidents that could harm national security or public interest must be reported within 24 hours of identification.

Chunlin says NDRC will use blockchain to secure credit data 

The Chinese government said it has applied privacy computing to the sharing of credit information to reduce the risk of information leakage.

It will explore the use of blockchain technology to promote the "chaining" of key data, realise data encryption processing and process…

— LondonCryptoClub (@LDNCryptoClub) April 2, 2025

Chunlin said at a press conference held by the State Council Information Office on April 2 that in terms of strengthening technical support and guarantee, the NDRC had applied privacy computing to the sharing and application of credit information to reduce the risk of information leakage. 

The initiative highlighted China’s drive towards innovative technology to improve credit data security, although market reactions remained unclear. Previously, China’s credit systems were supported by technologically advanced frameworks, showing an upward trend in loan distributions across small enterprises. By 2024, these loans reached trillions of yuan, indicating substantial demand and growth.

The integration of blockchain reportedly promises to further strengthen these systems by offering enhanced encryption and data processing. China’s adoption could potentially position it as a leader in credit management innovation as global economies integrate similar technologies.

“We are committed to enhancing the financing environment for small businesses to foster growth and innovation.”

~ Li Chunlin 

The project outlined in the ‘National Data Infrastructure Construction Guidelines’ will be implemented in two phases. The first phase, which focuses on designing the system architecture, is expected to be completed by 2026, while the full deployment is scheduled for 2029.

According to Chunlin, a key component of this infrastructure is the integration of smart contracts to automate data processes and eliminate unnecessary human intervention. The system will provide high-level security and reliability by ensuring that recorded data cannot be changed.

Data leak reveals public-private collaboration to monitor Chinese cyberspace

SentinelLABS analyzed a data leak containing infrastructure details and work logs from employees of Chinese state-affiliated private sector security firm, TopSec, revealing that TopSec was likely enabling content moderation for internet censorship purposes, a key strategy used by the Chinese Communist Party (CCP) to monitor and control public opinion on issues that the state deems contentious or antisocial. SentinelLABS identified this leak as a submission to a multi-scanner platform that fired off a rule that looked for common abuse activities associated with Kubernetes (K8s).

According to SentinelLABS, the data leak included a document with 7K+ lines of work logs and code used to organize infrastructure for the firm’s DevOps practices and downstream customers. It included scripts that connected to several Chinese government hostnames, academic institutions, and news sites. SentinelLABS also reported that it found evidence indicating that TopSec provided bespoke services to a state-owned enterprise on the date that a corruption investigation targeting the organization’s top official was announced. 

The leaked documents analyzed by SentinelLABS referenced multiple organizations in both the private and public sectors, likely customers or otherwise associated with TopSec. Some of the TopSec customers referenced in these documents included Dongwu Fund Management Co. Ltd, Gucheng County Petition Bureau, Illegal and Harmful Information Reporting Center, Linhai Rural Commercial Bank, and Petkit, among others. 

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