In a recent session held on November 19 at COSM 2025, discussions illuminated the growing divide in blockchain adoption between China and the United States. Jinyoung Englund, the Chief Strategy Officer for China and Emerging Tech at the U.S. Department of Defense, highlighted the importance of blockchain beyond cryptocurrencies like Bitcoin, portraying it as a transformative technology with diverse applications. The session underscored China’s strategic maneuvering in the blockchain arena, positioning the nation ahead of the U.S. in leveraging this technological advancement.
Blockchain technology operates as a decentralized digital ledger, allowing secure record-keeping across a network of computers. It is characterized by its transparent and immutable nature, which ensures that data cannot be tampered with without disrupting the entire network. This fundamental attribute makes blockchain an ideal fit for electronic currencies, but its potential extends into various sectors, including global trade and industry.
According to a recent analysis from the Center for Strategic and International Studies (CSIS) by Anoosh Kumar, blockchain could revolutionize supply chain logistics, particularly in complex scenarios involving multiple actors. In instances where product components have to travel through various countries, a blockchain could streamline transactions and significantly reduce delays. By providing a visible, real-time record for authorized parties, it could cut operational costs by up to 80%, while drastically shortening transaction times from weeks to hours.
However, the larger implications of blockchain adoption hold particular weight in global power dynamics. Kumar notes that while the United States engages in ongoing debates about regulation, China has proactively moved to establish itself as a leader in the blockchain space. In a 2019 speech, President Xi Jinping emphasized the necessity for China to “seize the opportunities” that blockchain offers, positioning it as a cornerstone for future technological innovation.
One of the pivotal initiatives in this strategy is the Blockchain Service Network (BSN), which aims to be generational infrastructure. Leaders of the project predict that in the coming decades, all information systems may come to rely on blockchain transmission. This ambition is not only about technological advancement but represents a shift toward a new digital order where China could control internet access and online interactions more stringently.
Central to China’s model is the idea of “blockchain with Chinese characteristics,” which diverges from the Western ideals of decentralization and anonymity. The system promotes state-aligned governance, where strict controls are enforced through mechanisms like mandatory identity registration and adherence to national security standards. This approach fundamentally challenges the principles of immutability and censorship-resistance that define the traditional blockchain ethos in Western contexts.
Despite having banned cryptocurrencies as of 2025 to assert financial control and promote state-backed digital currencies, China continues to develop its blockchain framework. This move underscores the nation’s intent to integrate advanced technology while ensuring centralized oversight.
Kumar emphasizes that countries adopting Chinese technology face a unique dilemma; they may find themselves increasingly reliant on systems that embed state surveillance and control mechanisms, similar to those seen within China. Many countries that engage with China’s Belt and Road Initiative are attracted to this model, which offers a framework for governance that aligns with repressive strategies.
As these developments unfold, experts like Englund urge that strategic countermeasures are essential to mitigate the implications of China’s approach. Entities affected by these changes are encouraged to formulate a response strategy, considering the potential risks associated with ceding control over vital digital infrastructures to state-aligned entities.
