When it comes to developing technology, China has some advantages on the US. Still, those in the west would like to see things kept in check, with China just behind. That may not be the case forever, though.
26,000 Blockchain Firms
China has both a massive population and a massive technology industry. Currently, the country boasts over 26,000 blockchain companies in operation.
A total of over 700 blockchain businesses were founded in January alone, with the majority being in Guangdong province.
Although the ICO boom took place in 2017, 2018 was the year that saw the most blockchain businesses founded in China. The ICO is far from the only model to do business. There are, of course, honest ways to make money in the blockchain industry.
The majority of these companies, by a long shot, operate in Guangdong province. The province is the most populated in China and by far the most economically active, according to quick research. It’s also home to a number of technological initiatives and a booming tech industry.
If you count the companies that have either lost or expired their license, Guangdong alone has registered some 22,000 blockchain businesses.
Longhash keeps a record of number of companies that have registered in China as blockchain companies. Reportedly, nearly 80,000 companies have registered in all, with just over 26,000 left in operation. Some 57,000 plus lost their licensing somewhere along the way.
An Industry of Small Businesses
The majority of all companies had 5 million or less Yuan in registered capital, meaning the industry is relatively small businesses. 5 million Yuan translates to about $720,000 at current exchange rates.
China may be a popular destination for blockchain companies at present, but it’s far from the only one. Vietnam and Singapore have both managed to create significant blockchain sectors. In the case of Singapore, some 40% of new blockchain businesses launched there last year, according to data published by the Block.
At the same time, Hong Kong would like to be known as a good alternative to China. You can have similar, well, everything, without the limits imposed by the Chinese government, such as the Great Firewall.
Still, working in China gives you access to a great number of people you might not otherwise reach. No amount of WeChat channels will replace having an actual presence in the country, especially if that presence can be used to build blockchain companies.
It appears if you want to build a blockchain business today, it makes as much sense to consider China, where you will definitely get some work done, as it does the US.