Abstract

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Title:: Application scenarios and legal risk management of blockchain in international trade

Author(s):: ZHANG Xi1; JIN Chunyang2; 1.School of International Education , Xi’an Jiaotong University, Xi’an 710049, Shaanxi, China；2. School of Law, Xi’an Jiaotong University, Xi’an 710049, Shaanxi, China

Keywords:: blockchain; trade efficiency; transnational corporation; smart contract; crossborder ecommerce; intellectual property; compliance management

Abstract:: Relevant parties in international trade have always faced problems of high trade costs, difficulty in communication and low efficiency caused by the crisis of trust. This paper conducts research on the legal risks faced by global operation by transnational corporations using the application of blockchain in international trade as research object. The research finds that blockchain has multiparty collaboration, nontampering, traceability, verifiability, decentralization, and detrust characteristics. It can help transnational corporations and their customers to maintain the consistency of actions and the integrity of communication in international trade. The application prospects of blockchain in trade record tracking, supply chain supervision, trade contract performance, payment settlement, copyright trade are broad. The application of blockchain in international trade by transnational corporations faces such potential legal issues as the leakage of confidential information, violation of data localization requirements, noncompliance in crossborder data flow, illegal change in labor conditions, being involved in monopoly and money laundering, etc. Transnational corporations should effectively strengthen compliance management so that blockchain can play an active role in international trade within the framework of law.