China’s top leadership directed the construction of a national blockchain network through a joint policy document issued by the Communist Party of China Central Committee and the State Council, as reported by Xinhua. The directive, titled “Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces,” integrates blockchain into manufacturing and the real economy while mainland China’s ban on cryptocurrency trading remains firmly in place.
Policy Integration Without Cryptocurrency Exposure
The 19-point blueprint focuses strictly on industrial infrastructure rather than speculative digital assets. Bitcoin and other independent cryptocurrencies receive no mention in the document. Instead, Beijing frames blockchain as infrastructure to be integrated with manufacturing and other real-economy activity.
The broader policy agenda includes building a national integrated computing-power network and advancing the “Eastern Data, Western Computing” project, which shifts data storage and computing activity toward China’s western regions.
The policy cautions against prioritizing virtual activity over the real economy or creating bubbles. Practical integration with industrial output takes precedence. Related blockchain applications include atomic settlement of tokenized assets and regulated controls for on-chain financial products.
Infrastructure Precedents and the State-Backed BSN
China already operates a state-backed Blockchain-based Service Network (BSN) that supports government and business applications. This existing network prohibits cryptocurrencies such as Bitcoin from operating on its rails.
Whether the newly ordered national system will build on BSN remains possible but unconfirmed. The directive also calls for improving rules regarding data ownership, data trading, and cross-border data flows.
Conflux Token Surges on Regulatory Compliance Narrative
The policy announcement triggered a sharp rally in Conflux (CFX), widely seen as China’s only regulatory-compliant public blockchain.
According to Binance data, CFX surged from around $0.0505 on October 10 to over $0.059, a gain of roughly 17% from intraday lows. Investor interest climbed further over the weekend, with tokens reaching highs above $0.07 on Sunday, October 11, before settling near $0.066 at 8:00 a.m. EDT—more than 26% above the previous close.
This interest stems from Conflux’s work with state-backed corporations, its approach to unregulated crypto token sales within China, and its founders’ professional and academic ties to state-run Tsinghua University.
Market Speculation Versus Confirmed Government Selection
Despite the sharp valuation rally, the policy document does not name Conflux as the operator of the proposed national network, nor does it say CFX will be used as its token.
The market price action reflects an association and a possible future benefit rather than a government selection or confirmed integration. Durable fundamental value would require evidence of a role in pilots, standards, or deployed infrastructure. The policy announcement supplies none of those confirmations, leaving the near-term test dependent on whether markets continue to assign value to Conflux’s China-linked positioning while policy details remain unspecified.
