- Fuzhou, a Chinese state will offer rent subsidies and cash rewards to startups and industrial firms embracing blockchain technology
- China’s authorities still promoting crypto technology besides the woes of the impinging trade war in the crypto space
On June 11, 2019, Fuzhou, a China city is reported to be offering rent subsidies to blockchain businesses to boost the industry’s growth. The state plans to issue the incentive in three measures in a bid to accelerate the growth of its industries. The companies in Fuzhou will be eligible to receive up to $86,800 in relief on rent bills per year for three years.
Traditional Companies Not Left Out
The state-run news outlet reports that traditional industries who are experimenting with the applications of blockchain technology will be entitled to attain a 20% subsidy on the cost of what they use in the project.
Meanwhile, blockchain application ventures that win prizes of scientific and technological progress, or focus on positive developments of Fuzhou, would be awarded up to 600,000 yuan.
The publication also states that Chinese authorities will be on the lookout for firms that promote industrial blockchain applications conducted in research centers and technology labs. These firms are said to receive a whopping $289,000 once identified. In addition to that, if these firms take part in high-end conferences at provincial, national, and international levels, they will be rewarded with $144,500 more.
US-China Trade War is Affecting the Crypto Space
On April 4, 2019, Blockchain Reporter had reported that the tech sector showed significant stock rises after the US and Chinese officials confirmed to have closed in on a previously formulated trade deal. The several setbacks generated from the trade war have been a nightmare for most investors. Luckily, after the almost alluring deal of the two global market parties, the fintech industry was doing well then.
In the following week, although, it might be unrelated to the trade war, on April 9 China’s state planner added cryptocurrency mining to the list of activities that should be phased out.
Apparently, China’s National Development and Reform Commission (NDRC) published a draft proposal revising the existing Catalogue for Guiding Industry Restructuring. The list points out industrial activities that should be encouraged, restricted, or discontinued. Unfortunately, bitcoin mining was categorized as an undesirable activity which should be eradicated in China’s future development.