China Aerospace Science and Industry Corporation has announced it is developing a blockchain invoice system.
Right now, China Aerospace’s electronic invoices are end-to-end. They cover issuance, delivery, filing, inspection, and reimbursement. So far it has issued around 2.5 billion invoices, and their levels of issuance are in-line with other major Chinese corporations. The electronic invoicing system that is commonly used in China is subject to over-reporting, false-reporting, and problems with chain-of-custody.
China Aerospace created a blockchain invoice system to augment its electronic invoices, so they can better track their invoices and ensure that their accounts are accurate. The Chinese have struggled to adapt their fapiao system to a growing a growing economy. Fapiaos, or official Chinese invoices, are a throwback to the beginnings of industrialisation in modern China. They were introduced in the early 1980s and haven’t changed much since then. In addition to helping industry to keep accurate accounts, blockchain invoices are said to help Chinese tax-authorities with their job.
For now, the pilot program that was approved by State Administration of Taxation is limited to small-scale businesses, but the recent report from People’s Daily is any indication of things to come – blockchain invoices could be going nationwide in the not-too-distant future.