I think this is a bigger step forward than most people realize. I've spent a good deal of time in China and know first hand the corruption that faces it's government. Recently(in the last few years), China's citizens have been demanding more of an accounting of its government in order to cut down on bribery and favoritism. Using the blockchain may help keep a record of certain taxable systems in China. And as long as there is a method of recourse if corruption is found, then this could be a major benefit to citizens in the modernized cities.

The only issue is that most of China is not modern. Thousands of small cities and towns are so spread out and underfunded that it may take a while for local governments to adopt this system, if they do at all. Even if they do, the overall government may not spend the resources to correct issues found in the smaller provincial areas. China's own social media platform (they do not have easy access to major social media platforms the rest of the world has) has encouraged accountability of the government as well as large corporations. The issue is, the government is still the enforcer in these situations and could easily manipulate data upon media platforms to their advantage. If using a form of blockchain removes that aspect, this is good news indeed.