Headline: China pushes banks to use blockchain for tax-data sharing to unlock SME credit
China’s regulators are urging banks to upgrade the “bank‑tax interaction” model and adopt blockchain-powered data standards to expand financing for small and medium‑sized enterprises.
What’s new
- A recent policy notice from the State Administration of Taxation and the National Financial Regulatory Administration calls for standardized data sharing between tax authorities, banks and taxpayers. The goal: reduce information asymmetry, speed up credit approvals, and boost financing availability for “honest, tax‑paying enterprises.”
- Regulators also want banks to improve credit models and approval efficiency so more SMEs can access loans and other financial services.
Where blockchain fits
- This push aligns with Beijing’s broader infrastructure plan: a National Development and Reform Commission roadmap issued in January 2025 mandates integrating blockchain into China’s data infrastructure, targeting nationwide deployment by 2029.
- Officials, including Shen Zhulin of the National Data Administration, say the initiative could draw roughly 400 billion yuan (~$58 billion) in annual investment if scaled.
Background and regulatory stance
- China’s leadership has publicly backed blockchain for years. In 2019, President Xi Jinping called the technology a “breakthrough” and urged its faster integration into the real economy. The country has since expanded projects such as a blockchain‑based electronic invoice system piloted by the Shenzhen Tax Bureau.
- At the same time, Beijing has maintained a hard line on crypto speculation. A 2021 joint circular effectively banned crypto trading and mining nationwide. In February 2026 regulators broadened that framework to explicitly cover stablecoins and tokenized real‑world assets, requiring prior approval for RMB‑pegged stablecoin issuance and warning that unlicensed tokenization will be treated as illegal financial activity.
Why it matters for crypto and fintech
- The move highlights China’s strategy of embracing blockchain for trusted, state‑oriented infrastructure and financial inclusion, while tightly controlling speculative crypto and tokenization activities. For banks and fintechs, the directive means greater emphasis on interoperable tax and credit data — potentially improving SME access to debt — but within a tightly regulated framework for any tokenization or stablecoin activity.
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