Amid the global energy crisis, nine companies from four countries – China, Japan, Australia and Saudi Arabia – announced that they will jointly create a blockchain documentation platform to trade energy, chemical products and metal commodities, expedite customs clearance and cargo delivery.
Platform participants include Sinochem Energy, Mitsui. Co, Macquarie CGM, Saudi Aramco Energy Ventures, and five other Chinese companies in the finance, blockchain, transportation and energy sectors.
The platform was announced at China International Import Expo, China’s largest trade fair.
China has been experiencing oil shortages with the recent rise in iron ore prices. In May, China’s iron ore price soared to a 14-year high as Australia-China relations eroded. Last month, coal shortages caused by large-scale power outages, import cuts, flooding and emissions reductions hit China, sparking another crisis of diesel being used to power private generators.
Natural gas prices are up in Europe, coal is running out in India, and global energy shortages may be under threat as temperatures drop in the US.
China has started using blockchain to increase cross-border trade in both shipping and financing. In September, the Global Shipping Business Network (GSBN), a Hong-Kong-based nonprofit consortium whose members manage one-third of all shipping containers globally, activated its global shipping blockchain platform. Subsequently, Bank of China, DBS and HSBC announced a partnership with GSBN on the digitization of trade finance. The platform was created in partnership with Oracle, Microsoft, AntChain and Alibaba Cloud, aiming to reduce paperwork and increase information reliability in cargo transportation and cross-border trade.
