China is rapidly catching up to the United States with regard to blockchain-related investments, according to a recent report put together by New York-based research firm CB Insights.
The researchers found that the East Asian country accounted for 22% of blockchain investments in 2019, compared to 31% for the U.S. This represents a significant improvement for China when compared to 2015, when it had a meager 2% while the U.S. was getting 51% of total funding.
Headlined by the trade dispute of 2019, competition between the U.S. and China has intensified in recent years. That’s unsurprising considering they’re the two largest economies in the world. At best, however, the findings of this CB Insights report only suggest that U.S.–China competition is intensifying in the blockchain space as well. It doesn’t give a clear picture of which country is ahead in blockchain development.
In addition, given that there is a slew of conflicting blockchain investment reports out there, it’s difficult to say for sure just what proportion of global blockchain investment goes to either country. For instance, according to CB Insights, 2019 saw a global investment volume of about $2.8 billion, down from $4.2 billion in 2018.
Earlier in this year, Xinhua — China’s state-run financial media firm — and financial data platform Rhino Data reported that Chinese investment deals came in at around $3.44 billion (24.4 billion Chinese yuan) across 245 deals in 2019. This represents a 40.8% drop in investment volume when compared to 2018, the report stated.
Experts say that the majority of the investment in China originates locally for now, but they expect more foreign funds in the near future. Kevin Shao of Bitrise Capital Partners told Cointelegraph that:
“Currently, the main investors are mainly domestic venture capital institutions and individual investors as early stage investors. However, we believe that with the increasing internationalization of Blockchain technology, the…