VeChain's
National Level Partnership

In 2012, China's spotlight onnational strategic development wasdirected to the western inland region.
On February 20 of the same year, the State Council issued anofficial reply to the 12th Five-Year Plan for the WesternDevelopment Program, announcing that China would speed up
the development of new major cities in the west.

On January 6, 2014, the Central
Government State Council (国务院)mandated Gui’an New Area (贵安新区) as a
National Level Area of thePeople’s Republic of China.
Gui’an is located next to Guiyang, the capital city of Guizhou
Province, and covers 1,795 square kilometers (443,554 acres).

VeChain's
National Level Partnership

Gui’an has been given the same administrative
level granted to the widely influential Pudong
New Area, the zone that is the new financial
and economic center to Shanghai.
Gui’an New Area is a unique economic-development zone
directly controlled by the Central Government and is granted
preferential policies, funding, and privileges directly by theState Council of the People’s Republic of China.

On December 26, 2016, the State Council issued
the 13th Five-Year Plan on China’s national
informatization (2016-2020).
According to the plan, China will spend a tremendous
amount of resources into the development of cutting-edge
information technology, including 5G wireless systems,
IPv6, smart manufacturing, cloud computing, IoT, andblockchain technology.
Due to the appropriate climate condition, and cheap
electricity cost, Gui’an New Area has been mandated tobecome the National Data Center of the west.
The New Area will heavily focus on high-tech industries
including Big Data, Blockchain, Cloud Computing, and SmartSolutions. The New Area will house major data centers ofindustry leaders, for example, China Telecom has invested 7billion RMB, China Mobile has invested 2 billion RMB, andChina Unicom has invested 5 billion RMB in building theirown data center inside Gui’an New Area. Microsoft andApple have both invested over $1billion while IBM, Huawei,Tencent, Foxcom will be building significant data centers in
Gui’an New Area as well.

VeChain's
National Level PartnershipAs one of the most important national level
data center clusters in China, Gui’an New
Area was chosen to:
1.Become the new test zone for utilizing high and innovativetechnology to help improve Chinese government adminis
trative management efficiency.
2.Set a pilot program for all of China for true Smart-Citydevelopment and provide analysis as to what the benefits
for the stakeholders of Smart-Cities might be.
3.When the technology and the implementation process
streamlines are well tested, it is expected that this process
will be rolled out throughout the entire region of China.

VeChain is mandated to be the blockchain
technology partner of the government of
Gui’an to plan, design and implement suchprocesses.
The head of Chinese Central Government,Premier Li Keqiang after inspection of thenew plans of Guian, said “In Gui’an, I haveseen the hope of Guizhou, the hope of WestChina.”
Reference link from National State Council Media platform:
http://appen.media.gov.cn/engovdata/goven/201705/27/391569/article.html?from=groupmessage&isappinstalled=0

VeChain's
National Level Partnership
The plans are grand and obstacles abundant, in order tobegin, a few executable projects were chosen to initiate theblockchain implementation process:

VeChain will work closely with
Administrative Examination andApproval Bureau of Gui’an New
Area to provide a blockchain based
information system to collect andanalyze administrative data, offer
privacy protection of data andapply blockchain technology toreform business registration andcut red tape.
A.
The Administrative Examination and Approval Bureau of
Gui’an New Area has already started using theE-Government System powered by VeChain Thors
blockchain technology to store the business registration
related documents, such as a business certificate, bankaccount certificate, tax registration, organization code,
foreign trade registration, audit report, etc.

B.
For the Phase Two of theproject, E-Government
System will allow remotebusiness registration
functionality, documents
uploading, documents
reviewing and certificatesissuing to be done
remotely. With this newsystem, companies do nothave the need to waste timeand energy to get physicalstamps of approvals in
different governmental
departments.

This process disrupts theway the government has
processed administrative
requests to become morecollaborative while reducing
costs and time spent.

C.
The end result of theE-Government System will
provide robust auditing
over any government
processes occurring within
Gui’an, and future projects.

VeChain's
National Level PartnershipThe 2017 China International Big
Data Expo, endorsed by the CPC Cen
tral Committee and the State Councilof China, it was hosted by the NationalDevelopment and Reform Commission,
Ministry of Industry and Information,
the National Internet Information
Office and the People’s Government ofGuizhou, and kicked off on 24th May.
Under the witness and endorsement of
all the above government bodies, theManagement Committee of Gui’an Free
Trade Zone officially partnered with
BitSE or VeChain to build the world’s
first Blockchain Smart-Town.

B.
A.
The design and building of
the Blockchain Smart-Town
will be based on VeChain
Thor blockchain. Once
successful, the design,architect, construction ofthis pilot township will be
implemented on a muchlarger scale rapidly.

The blockchain projects involvedin creating such a wholesome
township design will be utilizing
the applications on
SmartBlockchain Administration,
SmartBlockchain Agriculture,
SmartBlockchain Retail, and muchmore. VeChain has already madeample steps to catering to a
Smart-Town through their smart
agriculture work in Liaoning
Province, alongside Liaoning
Academy of Agricultural Sciences.

VeChain's
National Level PartnershipWith extensive experience in providingwine/liquor tracking service, VeChain ispartnering with Gui’an Government tobuild the first-ever blockchain powered
fine wine/liquor exchange in the world,located in the Free Trade Zone of Gui’an
New Area.

VeChain is already well versed in wine
distribution and trade through its alreadyworking product used by D.I.G. This thefirst attempt for VeChain to combine

physical assets with digital assets to be
traded on an especially designed
blockchain based exchange, we expect this lineof VeChain Thor powered exchanges will
flourish globally as this initial exchange
is built and operational, on not justwine/liquor but any physical products orassets in the world.

VeChain's
National Level Partnership

In review:● The directional plan the Chinese Central Government haslaid out will continue to strengthen the core foundationof China to bring a robust suite of technological improvements and will use Gui’an as a rapid development centerfor emerging technologies.
● VeChain was mandated to be the central blockchain
partner for Gui’an and have already taken initial steps toimplement the E-Government System.
● Our Smart-Agriculture solution in Liaoning Province,alongside Liaoning Academy of Agricultural Sciences israpidly advancing.

VeChain's
National Level Partnership● VeChain is building the world's first blockchain powered
exchange that can handle physical goods and RMB both
digitally and in person. Our implemented work withD.I.G. has enabled us to begin this platform with fine
wine/liquor.
● As a result, VeChain Thor is nearing the ability to power
the first Smart-Town within Gui’an and soon, even more.

We share the same great hope of Head ofChinese Central Government, Premier Li
Keqiang and believe the widespreadblockchain integration of VeChain Thor
transcends business.