China's influence on the crypto market is significant due to its position as one of the world's largest economies. The country has a complex history with cryptocurrencies, including a ban on financial institutions transacting in virtual currencies since 2013.

Nanjing City, the capital of China's Jiangsu Province, has launched the "Blockchain Technology and Application Innovation Platform of China" to promote and enhance metaverse studies across the country. The entity aims to consolidate the resources of academic institutions and enterprises in China and bolster research efforts in areas related to the metaverse. Nanjing University of Information Science & Technology is spearheading the new state-backed entity, which includes a variety of academic institutions and blockchain-associated companies from across the mainland. Nanjing and Shanghai are among several Chinese cities vying for a leading role in the nation's metaverse evolution, with ambitious goals to establish a metaverse industry generating annual revenues exceeding billions of yuan by the end of 2025. Despite China's tough stance on cryptocurrencies and NFTs, the country recognizes the potential of Web3 technologies, including metaverse, as a catalyst for its digital economy.

China's cyberspace regulator has announced that products made by U.S. memory chip manufacturer Micron Technology have failed its network security review and that it will prohibit operators of key infrastructure from procuring from the firm. The Cyberspace Administration of China (CAC) stated that Micron's products pose significant security risks to China's critical information infrastructure supply chain, affecting China's national security. Operators of critical information infrastructure will be required to stop procuring from Micron. The decision on Micron comes amid a spat over chip technology between Washington and Beijing, during which the U.S. has imposed a series of export controls on chipmaking technology to China and blacklisted Chinese firms, including Micron rival Yangtze Memory Technologies Co Ltd.

China's State Administration has approved Microsoft's $69 billion acquisition of Activision Blizzard, making it the 37th regulator to do so. The EU and Japan have also given their approval, while the UK's Competition and Markets Authority remains opposed. The deal is still awaiting approval in the US, where legal experts are divided on its outcome.

China's Supreme People's Procuratorate has issued a warning to NFT users about the potential for economic exploitation through price manipulation. The Chinese government has been promoting the adoption of digital currency, with the digital yuan expected to improve liquidity in the Asian cryptocurrency market. However, the Supreme People's Procuratorate has called for proper regulation of the NFT market to ensure safe innovation and investor protection. The agency has urged NFT creators to report all financial activity in accordance with the law to prevent NFT-related crimes. As the NFT market expands, countries worldwide are working on formulating related tax frameworks.

The struggle for global supremacy between China, Russia, and the US, along with their G7 allies, is intensifying. Key summits are serving as critical arenas for these global power plays, with the G7 and EU leaders initiating a "battle of offers" against Beijing and Moscow to sway middle-ground countries. The West's renewed strategy involves a shift from primarily values-driven diplomacy to a more pragmatic approach, focusing on tangible offerings in trade and security to counter China's infrastructure investment and Russia's provision of weapons and nuclear-energy technology. As the world stage is set for an intense race for global dominance, it remains to be seen how this significant geopolitical competition will impact and shape the new world order.

China is launching a new National Blockchain Research Center to train 500,000 blockchain professionals and ensure that blockchain technology plays a central role in the country's digital economy. The center will work with universities, research institutes, and IT companies to address the issue of "blockchain islands" that have emerged due to the construction of individual closed-chain blockchain networks. China has also announced plans to launch a national blockchain network solution that will connect existing blockchain protocols and support other industries. The creation of the National Blockchain Technology Center is expected to significantly enhance China's innovation capabilities and core competitiveness in the global digital economy.

Futu Holdings and Up Fintech Holding, two Chinese online brokerages, announced that they will remove their apps from online stores in mainland China by May 18-19 in response to regulatory requirements. The Chinese Securities Regulatory Commission had previously said the brokerages' cross-border securities business for domestic investors violated Chinese law as they did not have the proper license. The two companies stopped accepting new mainland Chinese clients in late 2021. While Futu and Up Fintech have licenses in Hong Kong, Singapore and the U.S., they do not yet have a mainland China license. Currently there is no license for online brokerages specializing in cross-border trades for mainland investors. This is why the apps have been popular with mainland investors seeking to invest in overseas markets.

This week, major economic data from China and Japan, as well as a central bank rate decision from the Philippines, could be the main drivers for Asian markets. Investors are growing increasingly nervous about the U.S. and global macro outlook, with concerns about the U.S. debt ceiling, credit conditions, and the cumulative effect of Fed rate hikes overshadowing strong U.S. earnings. While world stocks ended last week on a shaky footing, Asian shares ex-Japan inched up for a second weekly rise in a row. However, the latest Chinese economic indicators have been shocking, with inflation and imports collapsing in April, casting severe doubt over the strength of the economy's post-lockdown recovery.

China plans to train 500,000 blockchain experts after opening a national blockchain research center last week. The center aims to develop blockchain talent and support China's digital economy. It plans to create a national blockchain network linking existing Chinese blockchains to support other industries. The goal is to apply blockchain technology to improve government and social data security. China hopes to build a world-leading blockchain technology by 2025 and cultivate blockchain enterprises that can compete globally. Meanwhile, Hong Kong is taking a different approach by establishing cryptocurrency as a new asset class to position itself as a virtual asset center.