China’s industrial agency plans NFT project but companies remain cautious

An agency under China’s Ministry of Industry and Information Technology (MIIT), one of the country’s major technology industry regulators, has plans to create its own digital collectibles, as more local players start to explore the use of non-fungible tokens (NFTs).

The MIIT’s Industrial Culture Development Centre said in a statement last Friday that it would mint and sell a batch of digital collectibles this year to “spread China’s industrial culture”. It also wanted to build an “industrial metaverse service platform”.

The projects are part of the agency’s efforts to implement a five-year plan on boosting the development of industrial culture. The proposed NFTs were meant as a way to use digital technology to “portray China’s industrial image” and “communicate externally” in the new era, the agency said.

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SCMP Explains: What are NFTs?

SCMP Explains: What are NFTs?

NFTs are usually dubbed “digital collectibles” in China, where authorities remain concerned that crypto projects may lead to scams. However, the scrutiny has not stopped an increasing number of institutions from testing the waters.

In December, state-run Xinhua News Agency released several collections of its photos as free digital collectibles, including those of the Chinese Communist Party celebrating its 100th anniversary at Beijing’s Tiananmen Square in July, and the government’s efforts to administer more than 2.7 billion Covid-19 vaccine doses nationwide.

The MIIT said it is soliciting materials from various sources, including industrial museums, companies, industry associations and public entities on a national industrial legacy list. Submissions should “reflect major events and achievements, important people and core technology in the course of China’s industrial development”.