Blockchain Startup Enters China’s Developing Chengdu Regionby Fintech News Hong Kong October 18, 2018
Blockchain-based startup SophiaTX establishes a presence in Chengdu, which is said to be one of the fastest growing cities in China.
Chengdu has been described as one of the hot new startup hubs to emerge since 2017, thanks to rapid economic development which also happens to skew towards tech.
The region also has ambitions towards becoming the finance hub of China.
Some of the more notable startups hailing for Chengdu include Codoon, internationally-known Camera 360 and Tower, among others.
Beyond just homegrown startups though, with a Chinathat is opening up to foreign talent, opinions have been floating that Chengdu could be a choice foreigner destination to set up their own expansions.
According to Supchina, there are incentives for tech and innovation startups to move to Chengdu, which includes 1 million yuan, startup capital, special visa categories for innovation and entrepreneurship, and three years in Chendgdu’s Tianfu New Zone, a free trade zone for free.
Adding Blockchain to Chengdu’s Exports Supply Chain
China is well-known for is global manufacturing, with sometimes entire brands being produced in the country. Issues behind transparency and trust within the supply chain has attracted SophiaTX into the region, though no doubt Chengdu’s friendly attitude towards tech companies provided a driving force as well.
Swiss-based SophiaTX aims to expand its blockchain solution into China by introducing its smart contracts, while keeping everyone in the value chain accountable via blockchain.
With a global manufacturing cycle, China’s manufacturers and those who utilise China’s factories are able to better answer to demands of sustainable or ethical manufacturing, the fidelity of the supply chain or even figure out where prices aren’t congruent with services provided.
Higher customer demand and scrutiny for morally sound manufacturing processes have led to an increasing need for similar services.
SophiaTX’s move into Chengdu proves that there are, in fact, foreign tech companies that are interested in the region, though whether one would call the project a success remains to be seen as the area continues to develop its tech scene.
Featured image credit: Pixabay