The Chinese government has announced its innovative intention to transform China Aerospace and Industry Corporation Ltd system into a blockchain-based platform. According to a report published on a government’s official website on the 13th of August, this move is geared towards ensuring the effective and efficient improvement of its electronic invoice system.
The State Administration of Science, Technology, and Industry for National Defence also expressed concerns and suggested ways in which the blockchain technology could be utilized to innovate the use of invoices for taxation purposes. The mouthpiece of the Communist Party of China (the CPC) writes:
“The use of electronic invoicing can significantly reduce corporate invoice purchases and indirect management costs. The system developed by China Aerospace Science and Industry Corporation Limited Aerospace Information Co., Ltd. can seamlessly interface with the internal information system of the company and realize the comprehensive digitization of invoice information, which helps enterprises to improve the efficiency of accounting processing and provide timely decision support to business operators.”
In the article published by the government’s official newspaper: “people’s daily ” which was released earlier this week by the State Administration of Science, Technology, and Industry for National Defence and formulate how the blockchain technology will help innovate the supervision of invoices for tax purposes within the country.
The article published noted figurative statistics showing 1.31 billion Chinese electronic invoices were in circulation in 2017. And by 2022, the number is speculated to reach about 54.55 billion, according to a projected average annual growth rate of over 100 percent.
The company, after the transformation has already issued over 2.5billion invoices, this as noted in the article stating the use of the company’s electronic invoicing services (end-to-end). This has covered issuance, delivery, filling, inspection, and reimbursement for the taxpaying population of the country and authorities as well.
It was also stated that the aerospace’s blockchain-based digital invoicing system is currently undergoing a trial operation in Beijing, Shandong, Hubei, Anhui, Ningxia and other places in which more than 300,000 invoices and non-tax bills will be subsequently added to the system, which will help to improve billings.
However, this feat hasn’t been achieved on a platter of gold, neither has it been an itch-free exercise, as there were certain challenges faced by the company while using the digital invoicing which is Described to have been In a level of “comprehensive promotion and adoption.” The challenges faced by the institution are that of traceability issues in the process of invoice circulations, over reporting, false reporting, to mention but few.
The China Aerospace tapping into the varieties of potentials of the blockchain technology has now developed a new blockchain system which enables electronic invoices and allows for authorized and “credible” invoice issuance as well as traceable circulation, efficient and cost-effective oversight by tax agencies in the country.
The company, through one of its representative, told People’s Daily that the innovative blockchain technology would (in no small measure) solve the industry’s “pain points” and make efficient and secure taxation database sharing this staggering reality.
Apparently, even the south-eastern city of Shenzhen know China has also been implementing a frontline blockchain ecosystem for invoices which were developed by Tencent — the developer of the 1 billion-user social media platform WeChat, in a contractual partnership the Shenzhen’s municipal taxation bureau.
Also, the CPC published a blockchain educational book few days to the official announcement titled, Blockchain – a Guide for Leaders, this book is composed of a collection of articles with both theoretical and practical aspects.
The president of People’s Daily, has also come publicly to commend the tremendous potentials of the blockchain technology stating the most significant contribution of blockchain is its operating mechanism which accommodates “fair distribution of resources, thus ensuring that the community has consistent goals, and members have behavioral norms.”