China Urges Banks to Use Blockchain in Small-Business Lending

China launched its “bank-tax interaction” program in 2015 to turn tax-payment records into credit signals for small businesses that often lack collateral or complete financial statements. By allowing banks to assess borrowers with authorized tax data, the system aims to narrow information gaps among tax authorities, lenders and companies. By the end of 2025, Chinese banks had extended 45.1772 million loans worth 15.7 trillion yuan through the program, making it a major channel for inclusive finance.

The State Administration of Taxation and the National Financial Regulatory Administration issued a joint notice dated March 27, 2026, encouraging local tax authorities and banks to use blockchain and privacy computing to upgrade the program. Banks were also told to improve direct data links, credit models, approval efficiency and risk monitoring while observing company-authorization and data-minimization rules. The initiative follows a January 2025 national roadmap targeting nationwide blockchain-based data infrastructure by 2029, which officials expect to attract 400 billion yuan, or about $58 billion, in annual investment.