(Yicai) June 5 -- Commercial cryptography companies in China are accelerating their expansion into overseas markets to cope with the test of the economic cycle amid the increasing industrial concentration and the gradual formation of a business ecosystem.

Yicai recently spoke with several cryptography technology companies located in the G60 Commercial Cryptographic Industrial Base in Shanghai's Songjiang district that will participate at the 10th China Shanghai International Technology Fair from June 12 to 14.

Koal is keen on developing international and industry standards for quantum-resistant cryptography while speeding up the implementation of products in diversified scenarios, including privacy computing and blockchain, Zhu Feng, director of the board of directors, told Yicai. It will help build a new generation of digital trust service systems to cope with the possible threat to public key cryptography in quantum computing, Zhu added.

Koal, which is listed on Shanghai's Nasdaq-style Star Market, will unveil China's first all-quantum integrated network security and data security solution based on quantum-resistant cryptography at the technology fair.

Koal turned a profit last year and may maintain growth this year, according to Zhu. However, the economic cyclicality, slow payment collection, and delayed project approval make profitability challenging, Zhu pointed out.

View Sources, a startup that provides data security products and solutions with cryptography technologies as the core, will showcase controllable digital security-commercial cryptography and an independent and trusted digital base.

View Sources's revenue has doubled or tripled every year since it was set up in 2020, while its profit doubled last year, said General Manager Qian Zheng. Similar companies have also ushered in explosive growth in performance with the recent development of cryptographic innovation demand, including replacing traditional products with innovative cryptographic ones in industrial control, medical care, and education, Qian noted.

For China's commercial cryptography industry, companies in privacy computing, open sharing of data, and the development of large models have all accumulated competitiveness that distinguishes them from foreign firms while also forming advanced Chinese solutions, Qian pointed out.

Trust Asia is one of the few electronic certification service providers in China with domestic and international certificate authorities qualifications.

"Enterprises are enthusiastic about going overseas, but how do we sign a business contract to do that?" Qi Kai, director of Trust Asia's commercial cryptography application division, said to Yicai, "We have many difficulties and weaknesses, so we are constantly exploring ways to make cross-border contract signing more convenient and more in line with security and compliance requirements."

The G60 Commercial Cryptographic Industrial Base aims to be a commercial cryptography industry cluster, with more than 30 well-known companies having settled in, GM Hu Yongbiao told Yicai. "It has embraced about a tenth of China's industry-leading firms, and it will likely home about 800 technical talents by the end of this year," Hu added.

Editor: Martin Kadiev