What happened: Fuzhou, the capital of China’s southeastern Fujian Province, plans to offer rent subsidies and cash rewards to blockchain businesses in a bid to boost the city’s tech industry. Blockchain companies could qualify for subsidies that reduce their rent by as much as RMB 600,000 (around $86,800) annually, for three years. The same amount will be offered as a cash reward to award-winning projects that make scientific and technological progress, or those that transform the city. Companies that set up blockchain research centers or labs could see cash rewards up to RMB 2 million. Traditional companies that create blockchain applications will be eligible for a 20% subsidy on the cost of development. It is unclear when the Fuzhou government will roll out these incentives.
Why it’s important: China’s tech hubs, such as Beijing, Shanghai, and eastern China’s Hangzhou, have set high ambitions for blockchain adoption and have rolled out generous subsidies and supportive policies to pursue this goal. Last year, the Hangzhou government announced it would back a $1.6 billion blockchain startup fund. Smaller tech hubs like Fuzhou are just starting to slowly catch up. Last April, the Fuzhou government announced a regional policy to encourage tech companies and startups to adopt blockchain, AI, edge computing, and other cutting-edge technologies.