China backs blockchain network as CFX rally lacks policy confirmation

Key takeaways

  • A policy document from the Communist Party of China Central Committee and the State Council, made public by Xinhua, frames blockchain as part of a wider digital-economy expansion while mainland China's ban on cryptocurrency transactions remains in place.
  • The document titled "Opinions of the Communist Party of China Central Committee and the State Council on Developing New Productive Forces" does not mention Bitcoin or other independent cryptocurrencies. It supports manufacturing digitization, a national integrated computing-power network, and Eastern Data, Western Computing.
  • The state-backed Blockchain-based Service Network supports government and business applications but prohibits cryptocurrencies such as Bitcoin from operating on its rails. Whether a proposed national system builds on it remains unconfirmed.
  • CFX rose after investor interest in China-linked Conflux increased, but the policy did not select Conflux or confirm CFX's role.

What happened

A policy proposal for a national blockchain network appeared in the document issued by the Communist Party of China Central Committee and the State Council. The report also referenced the Great Hall of the People in Beijing, China. Cointelegraph reported on October 10, 2026 that China's Communist Party and State Council had ordered a national blockchain network as part of a top-level blueprint for the country's economy.

The document places blockchain within a broader agenda that includes digitizing manufacturing, building a national integrated computing-power network, and advancing Eastern Data, Western Computing, which shifts data storage and computing activity toward western regions. It also cautions against prioritizing virtual activity over the real economy or creating bubbles. That wording indicates the stated objective is practical integration with manufacturing and other economic activity, not unrestricted token speculation.

Related blockchain applications mentioned include atomic settlement of tokenized assets and regulated controls for on-chain financial products. Neither detail establishes how China's network will be designed.

Market context

The announcement did not change mainland China's existing ban on cryptocurrency transactions. Beijing's support for blockchain as infrastructure may create opportunities in enterprise and government systems, but it does not amount to permission for mainland residents to trade private cryptocurrencies.

The state-backed Blockchain-based Service Network already supports government and business applications while prohibiting cryptocurrencies such as Bitcoin from operating on its rails. Whether the proposed national system builds on that network is possible but unconfirmed.

Investor reaction appeared quickly in the CFX market. IBTimes reported that investor interest in China-linked Conflux increased after the announcement, with CFX climbing from Saturday morning and reaching highs above $0.07 on Sunday. At 8:00 a.m. EDT that day, it was near $0.066, more than 26% above the previous close. A Tradingview chart labeled CFX USD showed the price reaction.

The source describes CFX as widely seen as China's only regulatory-compliant public blockchain, citing Conflux's work with state-backed corporations, its approach to unregulated crypto token sales within China, and its founders' professional and academic ties to state-run Tsinghua University. A reported event-session reference was approximately $0.066 at 8:00 a.m. EDT on October 11, after CFX had traded above $0.07.

Why it matters

The key distinction is between blockchain as infrastructure and cryptocurrency as tradable assets. The policy supports the first while leaving the second restricted in mainland China.

For readers, the announcement matters because it signals where state-directed digital investment may go: manufacturing, computing-power coordination, data storage, enterprise systems, and government applications. It does not signal a reopening of domestic crypto trading.

The CFX rally illustrates how markets can price narrative exposure before policy selection. The policy document does not name Conflux as the operator of the proposed network, nor does it say CFX will be used as its token. The rally prices an association and a possible future benefit, not a government selection or confirmed integration.

That gap creates risk. A China-linked story can attract speculative demand quickly, while any durable fundamental case would require evidence of a role in pilots, standards, or deployed infrastructure. The policy announcement supplies none of those confirmations. It supports the view that blockchain is part of China's digital economy agenda.

What to watch

The next meaningful step is implementation detail. Authorities have not yet identified implementation standards, governance arrangements, or participating networks for the proposed system.

A durable signal would be official confirmation that Conflux or another network participates in pilots, standards work, or deployed infrastructure. Until such details appear, the announcement remains a meaningful infrastructure signal but not confirmation that CFX has secured a place in China's national blockchain network.

For the broader market, the watch point is whether blockchain support continues to be expressed through state-backed applications and controlled digital-economy projects, while independent cryptocurrency trading remains outside the permitted framework.