Blockchain
Entrepreneurs in China are submitting extra blockchain patents than any nation on Earth, however solely a fraction of these purposes are being accepted.
In keeping with Jianwei Wang, the deputy director on the Ministry of Trade and Info Know-how, Chinese language blockchain patents account for 84% of the world’s complete.
In an announcement subsequently reported by the South China Morning Submit, Wang mentioned that blockchain, “accelerates integration with the financial 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, nonetheless. One potential level of concern for Chinese language progress is that solely a fraction of these patents are ok to win closing approval.
Additional information means that much less of these accepted patents go on to develop into 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 is just not. The mining of cryptocurrency can be banned, forcing operations underground.
In the meantime, a Chinese language courtroom just lately discovered that the possession and buying and selling of cryptocurrency is protected by legislation, so long as that cryptocurrency is traded as property and never forex, as a result of cryptocurrency can’t be forex, and subsequently it isn’t.
Such mind-bending semantics counsel that if the Chinese language Communist Social gathering (CCP) was to abolish singing within the rain, Chinese language innovators and lawmakers would ultimately discover a solution to dance between the raindrops.
China’s burdensome and oppressive edicts have resulted in a extremely centralized atmosphere by 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 initiatives 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 robust military of builders. Main trade gamers comparable to Emperor Group, HSBC, Lan Kwai Fong Group and Maxim’s Group are amongst its prospects.
BSN now has plans to construct on its success and develop into a world drive, however it might 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 corporations are too carefully tied to the CCP and subsequently 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 purposes are accepted, within the U.S. that determine is a far greater 26%. In South Korea, patent approval is a large 45%.
This in accordance with 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 nice. The report in contrast and contrasted patents from nations from all over the world together with China, The U.S. and South Korea.
As of Oct. 2021, PatSnap discovered there have been 55,000 international blockchain patents.
The report (auto translated from the Chinese language) was subtly crucial in that it mentioned, “China is presently the nation with the biggest variety of patent purposes on this discipline, with about 33,000 items, accounting for about 63.2%, however the high quality of patents nonetheless has room for growth.”
That high quality situation is certainly one of main significance, and it tarnishes among the sheen from China’s blockchain figures.
Citations wanted
One of many methods by which the standard of a patent will 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 could be logical to imagine that Chinese language patents would even have extra citations than anybody else, as every innovation builds upon one other. In truth, exactly the alternative is true.
Within the class of essentially the most profitable patents within the trade, measured as these that are cited over 100 instances or extra, U.S. innovators are 13 instances extra profitable than China.
As PatSnap goes on to say, “it’s value noting that 1.3% of the patents in america have been cited greater than 100 instances, indicating that the related technological improvements are very excessive and influential, and are usually acknowledged by the trade. Solely 0.1% of blockchain patents in China are cited greater than 100 instances.”
General the information counsel 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.
