75,000 New Ventures Signal Unstoppable Digital Transformation

In an impressive show of technological ambition, China saw the emergence of approximately 75,000 new blockchain startups last year, as reported by DL News. This surge, confirmed in early 2025, brings the total number of operational blockchain companies in the country to around 290,000. This data highlights the deep and rapidly growing integration of distributed ledger technology into China’s economy, despite the complex regulatory environment surrounding cryptocurrencies.

Deciphering the 75,000 China Blockchain Startups Figure

The reported figure of 75,000 new China blockchain startups requires immediate contextual analysis. It is essential to understand what defines a ‘blockchain startup’ in this context. Many of these entities are likely focused on enterprise applications of blockchain technology rather than cryptocurrency trading or public decentralized finance (DeFi). These applications encompass:

• Supply Chain Management: Improving transparency and traceability for goods.
• Digital Identity: Establishing secure, user-controlled identity verification systems.
• Intellectual Property & Copyright: Leveraging blockchain for immutable proof of creation and ownership.
• Government Services: Implementing blockchain in areas such as notarization, tax records, and public administration.

This growth directly aligns with China’s 14th Five-Year Plan (2021-2025), which has prioritized blockchain as a core technology for innovation. Additionally, local municipal and provincial governments have actively launched blockchain industrial parks and innovation funds, offering direct incentives for entrepreneurship. Therefore, the surge is a result of sustained, top-down policy support for the underlying technology rather than random occurrence.

The Wider Landscape of Blockchain Companies in China

With approximately 290,000 blockchain companies now in operation, China’s ecosystem is arguably the largest globally in terms of registered commercial entities. However, analysts stress the importance of distinguishing between scale and maturity. A significant portion of these companies may be small-to-medium enterprises (SMEs) or project teams exploring proofs-of-concept. To illustrate, consider the following snapshot of global blockchain enterprise focus:

Moreover, the growth of blockchain companies in China is geographically uneven. Major tech hubs like Beijing, Shenzhen, Hangzhou, and Shanghai are home to the majority of well-funded and established players. These cities are competing to establish themselves as leaders in blockchain innovation nationwide. Concurrently, the state-backed Blockchain-based Service Network (BSN) provides a standardized infrastructure, aiming to lower development costs and hasten adoption for these new startups.

Expert Perspective: Distinguishing Hype from Sustainable Growth

Dr. Li Wei, a technology economist at Fudan University, offers critical insight. ‘The impressive number of 75,000 new China blockchain startups is noteworthy, but the key metric will be the survival and scalability rate over the next three years,’ she emphasizes. ‘Many ventures are exploring niche applications in logistics, agricultural product tracking, or digital certificates for small businesses. The true impact will be measured by how many achieve significant commercial adoption and contribute to tangible productivity enhancements.’

Furthermore, this growth occurs within a stringent regulatory sandbox. While China banned cryptocurrency trading and initial coin offerings (ICOs) in 2017 and reinforced this stance in 2021, it has actively promoted the non-financial applications of blockchain. This dichotomy presents a scenario where a thriving enterprise blockchain sector operates alongside a forbidden public crypto market. Consequently, startups must navigate this landscape cautiously, focusing on permissioned or consortium blockchain models that align with regulatory expectations.

The Driving Factors and Economic Implications

Several interconnected factors are driving this expansion. Primarily, the digital transformation across all Chinese industries is creating a significant demand for trust and efficiency solutions that blockchain could potentially offer. The post-pandemic economy has also accelerated the digitization of business processes. Secondly, substantial capital from government-guided funds and private venture capital has flowed into the sector, seeking the ‘next Alibaba’ of blockchain.

The potential economic impact is multifaceted. While successful blockchain companies in China could generate high-value jobs in software development, cryptography, and systems architecture, widespread adoption could combat fraud, streamline administrative burdens, and reduce costs in sectors like cross-border trade and supply chain finance. Nevertheless, challenges persist, including interoperability between different blockchain platforms, the energy consumption of certain consensus mechanisms, and the necessity for skilled talent.

Concluding Remarks

The establishment of 75,000 new China blockchain startups last year underscores the country’s strategic focus on mastering foundational digital technologies. This growth, elevating the total to approximately 290,000 blockchain companies, embodies a national endeavor to construct a next-generation digital infrastructure. While the long-term trajectory of these individual startups remains uncertain, the collective activity cements China’s position as a global center for enterprise blockchain innovation, development, and experimentation, distinctly detached from the volatile realm of cryptocurrency markets.

FAQs

Q1: Does this growth signify China’s acceptance of cryptocurrency?
No. China upholds a strict ban on cryptocurrency trading, mining, and ICOs. This growth predominantly focuses on non-financial, enterprise applications of blockchain technology for supply chain, identity, and government services.

Q2: What is the Blockchain-based Service Network (BSN)?
The BSN is a state-backed, global infrastructure network designed to offer a standardized environment for developing and deploying blockchain applications. It aims to simplify blockchain development, making it as accessible and cost-effective as cloud computing, particularly for Chinese startups.

Q3: How does this number compare to blockchain startups in the United States or Europe?
Direct comparison is challenging due to differing definitions and reporting methodologies. China’s figure is likely substantially higher in terms of registered corporate entities, partly due to specific policy incentives. Western ecosystems often feature fewer ventures but sometimes with more substantial capitalization, focusing on areas like DeFi and Web3.

Q4: Are these startups only concentrated in major cities like Beijing and Shanghai?
While major tech hubs dominate, numerous new blockchain companies in China are also emerging in second and third-tier cities, often supported by local government innovation zones and industrial policies aimed at regional economic growth.

Q5: What are the primary challenges facing these new blockchain startups?
Key challenges include achieving real-world adoption beyond pilot projects, navigating the intricate regulatory environment, competing for technical talent, ensuring interoperability with other systems, and establishing a sustainable business model that justifies the use of blockchain over traditional databases.