To address the challenges of privacy leakage in identity information and transaction data within consortium blockchain， a Privacy Protection Method for Consortium Blockchain based on SM2 Linkable Ring Signature （PPMCB-SM2LRS） was proposed. Firstly， to overcome the issues of insufficient security and poor traceability in existing Linkable Ring Signature （LRS） scheme， it was redesigned in combination with SM2 digital signature， aiming to enhance the privacy protection of counterparty identities while enabling the traceability of malicious users. Secondly， based on the optimized Paillier homomorphic encryption algorithm， a hierarchical encryption strategy was proposed to realize the “visible unavailability” of private data， so as to improve the privacy and confidentiality of transaction data verification in consortium chain. Security analysis demonstrates that the proposed method is correct， unforgeable， conditionally anonymous and linkable. Experimental results show that compared with similar LRS schemes， PPMCB-SM2LRS has lower computational overhead， and the average time spent in the signature generation and verification stages is significantly reduced； additionally， it adheres to the principle of autonomous controllability in cryptographic technology development.