Posted 8 months ago | by Ben Armstrong

Huawei Could be Arming the CCP with a Weaponized Blockchain

In a recent report from Chinese Official News Outlet, the People’s Daily, Huawei’s vaguely stated “strategic cooperation agreement” with the central bank in 2019 was fleshed out with added detail.

Huawei will be a large contributor toward the government's “New Infrastructure Initiative” by providing its Huawei Cloud blockchain to help build Beijing’s digital city. The “Beijing Directory Blockchain System” will act as an all-encompassing blockchain-based tool for data governance.

The report indicates that blockchain is a fully trusted technology in China and its security is deemed as a “new infrastructure”.

The report states that the collection and storage of data will ultimately be for the convenience of the overall public by automating the bureaucratic processes of federal institutions such as real estate registration.

Huawei Will be a Major Data Producer

Other uses of the blockchain involve resolving small tasks such as finding a parking spot to more encompassing roles such as in the healthcare industry, analyzing data from community tap water, electricity, gas, and so on.

The report provides a description of the how blockchain will be used,

“In short, the 'catalog blockchain' system is everywhere, and it has become the 'Dinghai Shenzhen' of Beijing's big data action plan.”

Though some of the use of blockchain technology of the CCP is questionable, it's undeniable that the country has been the leading nation in blockchain implementation, from the government to business, down to its social uses.

A Data-Driven Nightmare

China could potentially become the first nation to implement a CBDC nationwide as its Digital Yuan trial has reached its final stages accompanied by its payment system.

It seems like Huawei is taking a much larger stance with the CCP rather than focusing on the tension between it and the US, it is not doing itself any favor by granting larger exposure between the CCP and itself.

Data collection is what got Huawei in trouble with the US in the first place and it could potentially isolate itself even further in the West due to its collaboration with the authoritarian Chinese state.

Huawei should be wary as the Trump Administration is close to being reelected, which would put additional pressure on any Chinese company that has close ties to the CCP. If and when Trump is elected for a second term – the fallout for Chinese industry may be catastrophic.

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