Huobi Group Creates Chinese Communist Party Committee

Huobi Group Creates Chinese Communist Party Committee

Huobi Group, the backers of cryptocurrency exchange Huobi, has become the first crypto and blockchain firm to create a Chinese Communist Party (CCP) committee. The move was initiated to woo the Chinese government into a closer relationship.  

Also read: Growing Number of Exchanges Embrace Bitcoin ABC as ‘BCH’

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If You Can’t Beat ‘Em, Join ‘Em …

Huobi Group has created a Chinese Communist Party committee at their subsidiary Beijing Lianhuo Information Service Co. Ltd., per the South Morning China Post.

Beijing Lianhuo was set up in April 2018 with Huobi CEO Li Lin being the largest stakeholder of the company. Huobi acknowledged the inception of its Communist Party branch through its official Weibo account.   

Play by the rules of the CCP to go farther in China.

The committee was inaugurated in the presence of CEO Lin and fifty party members from Huobi. Lin publicized the move as a major milestone for the company.

Further demonstrating loyalty towards the CCP, Lin stated that the Party’s pro-blockchain perspective has played a key role in Huobi’s recent success.

The objective of CCP organs at private firms is to ensure that non-state companies are aligned with the party’s larger goals and strategies.  

While China’s restrictive stance on cryptocurrency is clear, its position on blockchain is fairly positive. Last year’s crypto crackdown led Huobi to migrate to Singapore, however, the firm continues to operate a blockchain consulting and research platform from the mainland.

Currying Favor With the Government

What the CCP says goes in contemporary China. Therefore, from Huobi’s end, the forming of the committee is a rational step to stay in the good graces of domestic leadership.

“We must enhance the party’s political leadership and carry out the party’s principles and policies in private enterprises,” noted Cao Zhou, a Communist Party leader in Beijing’s Haidian district. 

Huobi Group’s developing ties with the Communist Party were visible earlier this year when the firm moved its Beijing-based blockchain research unit to the island province of Hainan, which Chinese President Xi Jinping has pledged to transform into a free-trade zone.  

In China, state-owned enterprises establishing party committees is the regular order of affairs. Some of the homegrown tech giants that have installed internal CCP committees include Alibaba, Baidu, Sina, Xiaomi, Tencent.

With Huobi’s joining of that lot, it’ll be to key to watch if other blockchain and cryptocurrency companies in the nation follow suit.

Will Huobi Group benefit from forming closer ties with the Chinese Communist Party? Share your views in the comments section.

Images via Pixabay

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