Blockchain
Entrepreneurs in China are submitting extra blockchain patents than any nation on Earth, however solely a fraction of these functions are being authorized.
Based on Jianwei Wang, the deputy director on the Ministry of Business and Info Expertise, Chinese language blockchain patents account for 84% of the world’s complete.
In an announcement subsequently reported by the South China Morning Submit, Wang stated that blockchain, “accelerates integration with the economic system, companies for individuals’s livelihoods, sensible cities and administrative companies”.
Wang didn’t specify over what time interval his 84% declare was measured, however his feedback do align with a Statista report in Jan. which measured the distribution of world blockchain patents over 2021.
That is just one a part of the story, nevertheless. One potential level of concern for Chinese language progress is that solely a fraction of these patents are adequate to win remaining approval.
Additional information means that much less of these authorized patents go on to turn out to be profitable merchandise than in competitor nations such because the U.S. or South Korea.
Distribution of world blockchain patents in 2021, by nation (Supply: Statista)
A extremely complicated and irritating system
In China, cryptocurrency stays topic to a nationwide ban, however the underlying blockchain expertise will not be. The mining of cryptocurrency can be banned, forcing operations underground.
In the meantime, a Chinese language court docket just lately discovered that the possession and buying and selling of cryptocurrency is protected by regulation, so long as that cryptocurrency is traded as property and never foreign money, as a result of cryptocurrency can’t be foreign money, and due to this fact it isn’t.
Such mind-bending semantics recommend that if the Chinese language Communist Social gathering (CCP) was to abolish singing within the rain, Chinese language innovators and lawmakers would finally discover a method to dance between the raindrops.
China’s burdensome and oppressive edicts have resulted in a extremely centralized surroundings during which the nation is much forward of the expertise curve in sure areas comparable to its digital yuan, however the place innovation is annoyed elsewhere.
State-backed tasks together with the CBDC-related Blockchain Service Community (BSN), proceed to do properly in China’s home market.
The community now operates 28 blockchain frameworks, with 3,000 complete apps created by a 25,00 sturdy military of builders. Main business gamers comparable to Emperor Group, HSBC, Lan Kwai Fong Group and Maxim’s Group are amongst its clients.
BSN now has plans to construct on its success and turn out to be a world pressure, however it could discover vital challenges to abroad adoption.
In different expertise areas, comparable to 5G, governments, together with the U.S. and the U.Ok., have banned Chinese language expertise. The notion is that state-backed Chinese language firms are too carefully tied to the CCP and due to this fact pose a serious safety risk.
China patents face vital challenges
Whereas state-backed blockchain innovators face roadblocks from cautious abroad governments, the Chinese language patent system additionally has its personal points to deal with. Whereas solely 19% of Chinese language patent functions are authorized, within the U.S. that determine is a far greater 26%. In South Korea, patent approval is an enormous 45%.
This based on a 2021 report by PatSnap which examined blockchain innovation and its patents, and from a Chinese language perspective, not all of its findings had been for the great. The report in contrast and contrasted patents from nations from around the globe together with China, The U.S. and South Korea.
As of Oct. 2021, PatSnap discovered there have been 55,000 world blockchain patents.
The report (auto translated from the Chinese language) was subtly crucial in that it stated, “China is at the moment the nation with the most important variety of patent functions on this subject, with about 33,000 items, accounting for about 63.2%, however the high quality of patents nonetheless has room for improvement.”
That high quality subject is one in every of main significance, and it tarnishes a few of the sheen from China’s blockchain figures.
Citations wanted
One of many methods during which the standard of a patent could be measured is within the variety of citations it receives. Citations could point out {that a} particular patent or expertise led to additional helpful innovation.
With Chinese language innovators submitting extra patents than anybody else, it is perhaps logical to imagine that Chinese language patents would even have extra citations than anybody else, as every innovation builds upon one other. Actually, exactly the other is true.
Within the class of essentially the most profitable patents within the business, measured as these that are cited over 100 occasions or extra, U.S. innovators are 13 occasions extra profitable than China.
As PatSnap goes on to say, “it’s value noting that 1.3% of the patents in the US have been cited greater than 100 occasions, indicating that the related technological improvements are very excessive and influential, and are typically acknowledged by the business. Solely 0.1% of blockchain patents in China are cited greater than 100 occasions.”
Total the info recommend that patents within the U.S. and South Korea, though far much less voluminous, are of a greater general high quality.
In brief, typically high quality actually is best than amount.