Blockchain Technology in China and Its Application in the Chinese Accounting Sector

Abstract

The Chinese government has been giving increasing importance to blockchain technology in recent years, promoting its development and application as a strategic frontier technology for national economic and social development. The technology plays an important role in the process of informatization of Chinese economy and the Government aims at becoming world leader in global blockchain technology. The use of blockchain started with cryptocurrencies and quickly expanded into a wide range of fields, including accounting. The first chapter presents the regulatory framework of blockchain technology in China from both macro- and microeconomic perspectives, the latter focusing on the accounting sector. The second chapter maintains this division between a macroeconomic approach and a focus on the role of blockchain in Chinese accounting and reviews the main literature concerning the matter. In the third chapter, secondary data on the Chinese blockchain ecosystem have been analyzed and interpreted in light of the policy framework that regulates the development and adoption of blockchain technology in China and in its accounting sector as well as the existing literature on the matter. The Chinese blockchain industry is developing, but there are also some challenges that must be addressed: talent shortage, immature technology, limited adoption, and weak regulation. On the accounting front, the scarcity of quantitative data suggests that “blockchain + accounting” application exploration and experimentation, research, innovation, and investment are currently still limited. However, blockchain is expected to become more important in the accounting field in the coming years.