China’s regulators are pushing for banks to upgrade the “bank-tax interaction” model in a bid to expand financing for small businesses.
Summary
- China has urged banks to upgrade the bank tax interaction model using blockchain and shared data to improve financing access for small businesses.
- Authorities are pushing for better credit models and faster approvals, with a focus on extending loans to compliant and tax paying enterprises.
According to a policy notice issued by the State Administration of Taxation and the National Financial Regulatory Administration, banks and taxpayers should standardize data sharing to reduce information asymmetry between tax authorities, banks, and enterprises.
Further, the agencies suggested improving credit models, enhancing approval efficiency, and increasing the supply of financing services to “honest, tax-paying enterprises.”
China published a National Development and Reform Commission roadmap in January 2025 that directed the integration of blockchain into data infrastructure, with nationwide implementation expected by 2029.
Key officials like Shen Zhulin, deputy director of the National Data Administration, believe the initiative could attract around 400 billion yuan (about $58 billion) in yearly investments.
Meanwhile, in 2019, Chinese President Xi Jinping called blockchain a “breakthrough” and urged its integration into the real-world economy; subsequently, China expanded the country’s first blockchain-based electronic invoice system through the Shenzhen Tax Bureau.
China’s anti-crypto push
Despite backing blockchain development, China has remained strict on cryptocurrencies and speculative digital asset trading.
In 2021, authorities issued a joint circular effectively imposing a nationwide ban on crypto transactions and mining.
More recently, in February 2026, regulators expanded this framework to explicitly cover stablecoins and tokenized real-world assets, requiring prior approval for any RMB-pegged stablecoin issuance and warning that unlicensed tokenization activities will be treated as illegal financial operations.
