China is diving deeper into blockchain, aiming to secure critical data and streamline processes, according to Li Chunlin, deputy director of the National Development and Reform Commission (NDRC). This embrace includes using privacy-focused computing to share credit data and reduce information leaks, as stated by the NDRC.
A 2024 analysis spotlights China’s view of blockchain as vital to ‘national cutting-edge technology layout’, pushing local administrations to explore blockchain’s potential to boost the efficiency, transparency, and security of government operations. Smart contracts will automate data processes and eliminate unnecessary human intervention within this infrastructure.
However, China’s Cyberspace Administration (CAC) mandates blockchain firms to register users and hand over personal data to authorities when requested. Incidents risking national security or public interest must be reported within 24 hours, according to the Data Security Management Regulation.
The ‘National Data Infrastructure Construction Guidelines’ project is split into two phases: system architecture design by 2026, followed by full deployment by 2029. The system ensures data security, reliability, and immutability.
SentinelLABS’ analysis of a data leak at Chinese state-affiliated security firm, TopSec, revealed potential content moderation for internet censorship, a key tactic of the Chinese Communist Party (CCP). The leaked data included a document comprising over 7,000 lines of work logs and code organizing infrastructure.
According to SentinelLABS, the data leak also included scripts connected to Chinese government hostnames, academic institutions, and news sites. SentinelLABS also found evidence TopSec provided bespoke services to a state-owned enterprise when a corruption investigation targeting the organization’s top official was announced
The SentinelLABS analysis identified multiple organizations in both the private and public sectors, likely customers or otherwise associated with TopSec, referenced in the leaked documents. Some of the TopSec customers referenced in these documents included:
- Organizations: Dongwu Fund Management Co. Ltd, Gucheng County Petition Bureau, Illegal and Harmful Information Reporting Center, Linhai Rural Commercial Bank, and Petkit.