China targets blockchain for commodities and trade finance

Monday 4 March 2019 10:39 CET | News

China’s Ministry of Commerce and 12 other departments have issued a notice promoting the platform economy for the commodities sector.

The aim is to encourage digitization using technologies such as big data, Internet of Things and blockchain. The Chinese Ministry of Commerce’s missive wants to empower small and medium-sized businesses to participate in an “open” platform. It envisions innovative business models and trade credit information needs to be standardized.

In 2018, several global commodity sectors including energy, agribusiness and metals have started to consider blockchain as a way to share data within the industry. To date, the key benefit targeted is improved efficiencies in operations (oil extraction), logistics (agribusiness), post-trade processes (oil) and trade finance (commodities).

Chinese companies are already involved in some of these international initiatives. For example, COFCO International is the Swiss-based overseas investment and asset management arm of Chinese agribusiness COFCO Group. It recently joined the agribusiness consortium made up of Archer Daniels Midland, Bunge, Cargill, and Louis Dreyfus Company. Together the companies aim to digitize agribusiness shipping.

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Keywords: China, Ministry of Commerce, platform economy, commodities sector, agribusiness, oil extraction, logistics, post-trade processes, trade finance
Countries: World