The curious case of blockchain in rural China: Unravelling power, profit, and surveillance

Abstract

Blockchain originated from the aspiration for decentralization, and in Western countries, its association with freedom from governmental and corporate dominance remains unwavering. However, in China–where blockchain has taken an intriguing foothold–the socio-technical imaginaries of blockchain diverge significantly. As China rises in blockchain development, critical literature examining its ventures is notably lacking. This article analyses state-led initiatives and corporate endeavours related to blockchain deployment in rural China. While blockchain's roots lie in libertarian ideals, within China, it serves as a ‘state techno-solutionist’ tool, empowering authoritarian capitalism for enhanced state control and corporate profit through data exploitation. Although the application of blockchain in agricultural tracing and finance is heralded as a blessing to elevate smallholder farmers from poverty and enhance agricultural practices, the reality contrasts sharply. Instead of empowering farmers, the technology exacerbates power imbalances, embedding them in a system marked by extensive data harvesting and surveillance. Such integration entangles these farmers subsisting on China's economic fringes within broader national and global capitalist financial frameworks, rendering them more susceptible to exploitation and manipulation. Moreover, blockchain in rural China epitomizes authoritarian capitalism, where capitalists aligning closely with state agendas. Blockchain's transparency, traceability, and tamper-resistant features, instead of diminishing government interference, are harnessed by capitalists to amplify the social credit system, strengthening the data dominance of platform companies and supporting state surveillance. Therefore, blockchain emerges as a threat to rural China's ways of life–all driven by the pursuit of corporate profit and the government's quest to reclaim national greatness. Show more