>>15570278
>https://www.tradecommissioner.gc.ca/china-chine/cscs-scse.aspx?lang=eng
Country and sector informationChinaSME gatewayChina’s Corporate Social Credit System: How businesses can prepare
China’s Corporate Social Credit System: How businesses can prepare
As part of China’s push towards data-driven governance, the Corporate Social Credit System (CSCS) is to be a single, standardized reputation-based scheme for both local and foreign firms doing business in China, ensuring their regulatory compliance and improving their corporate behaviour. Although delayed due to slow regional implementation, standardizing best practices and evaluation criteria, and shifted priorities from the Covid-19 pandemic, China seeks to speed up completion of its ambitious credit monitoring system with the recent release of numerous regulations and policies.
While the CSCS has, the potential to level-the-playing-field for local and foreign firms alike, compliance for foreign firms may be more complex and costly. Resultantly, businesses must be prepared to navigate inconsistent regulatory systems with caution, as China can easily change their regulatory and compliance postures towards specific industries with limited notice.
Recent CSCS Directives
On December 21, 2020, China’s State Council issued the Guiding Opinions on Further Improving the System of Breach of Trust and Constructing a Long-term Mechanism for Building Integrity, which sought to integrate the experience of pilot corporate social credit programs and set standards nationally. Subsequently, relevant Chinese government agencies issued or revised their own regulatory policies – 147 in total – including: