China Ambitious to Dominate Blockchain Technology in Supply Chain

The collapse of the TradeLens Blockchain platform of two corporations IBM and Maersk is a great opportunity for China's GSBN to rise to the top of the world in global logistics.

China is promoting the “Make in China” campaign vigorously. In that campaign, future technology, especially Blockchain, was highly developed. However, in the field of the supply chain (logistics), the US and European countries have been somewhat faster than China.

By November 2022, one of the giants in the US technology industry, IBM, which supplies computer software and equipment and components, and the Danish logistics company Maersk, developed the software under the name TradeLens. After more than 4 years since its first public introduction in 2018, both have announced the cessation of the development of Blockchain technology in the supply chain sector. The reason given by the two sides is because of the lack of cooperation in the global field.

Rotem Hershko, head of business at Maersk.

Speaking to the press during that period, Rotem Hershko, Maersk's head of business platforms, said: “Although we have successfully developed a viable platform, there is a need for industry-wide collaboration. globally is still not large enough and TradeLens has yet to meet financial expectations as an independent business.”

Maersk said the company will continue its efforts to digitize the supply chain and increase innovation in the industry through alternative solutions to achieve the desired goal envisioned through TradeLens.

Before the two giants “fall” together, China has begun to emerge as an alternative factor. The Global Shipping Business Network (GSBN) based in Hong Kong (China), a non-profit corporation focused on commercial applications built on Blockchain technology, is optimistic about technology. technology as an important long-term logistical tool.

According to information from the South China Morning Post (SCMP), GSBN is operating one of the largest platforms in the world that can be described as an alternative to Maersk's TradeLens tool. The platform is based on a licensed blockchain with strong data governance, allowing only authorized parties to contribute and use shipping-related data.

GSBN's Blockchain technology was first launched in August 2021 with the ambition to inspect up to one-third of the world's freight trains. Up to now, the number of members of GSBN has accounted for 1/3 of the world's logistics ships after being established in March 2021 with 8 key members. GSBN's ambition when building Blockchain is to help digitize transportation processes, such as document issuance, customs clearance, and logistics data.

GSBN has signed cooperation relationships with major shipping partners such as Cosco, Orient Overseas Container Line, and Hapag-Lloyd. The organization also has partnerships with port operators such as Hutchison Ports, SPG Qingdao Port, PSA International, Shanghai International Port Group, and Cosco Shipping Ports. Of these members, only Germany's Hapag-Lloyd and Singapore's PSA International have no headquarters in mainland China or Hong Kong.

“I think for a lot of people, it's clear to them that the industry is digitized,” said GSBN CEO Bertrand Chen. He argues that global trade will not be able to continue using “pen and paper” by 2032. According to Chen, Blockchain has the potential to help the industry transform in order to deal with the drivers of sourcing problems. supply like COVID-19.

Blockchain has the potential to help the industry transform in response to triggers for supply issues like COVID.

The CEO suggested that China is leading the way in Blockchain logistics as the country has poured a “mountain of money” into the industry. He also acknowledged that many blockchain solutions in the country so far are very suitable for the Chinese market.

“When you throw too much money into one sector because it is a policy, you are likely to get lucky,” said Chen, referring to the mountain of money the Chinese government built a Blockchain system for logistics and other industries. need constant digitization. He added that Chinese investment in Blockchain development will benefit GSBN by creating more potential partners for the company. Chen also said that he is trying to mobilize European shipping lines to join.