Q&A | 10 Questions About the Corporate Social Credit System
On July 9, 2019, the General Office of the State Council issued the Guiding Opinions on Accelerating the Construction of a Social Credit System and Building up a New Credit-Based Regulatory Mechanism (the “Guiding Opinions “), for the purposes of strengthening regulatory capabilities, improving the market order, optimizing the business environment and promoting high-quality development. The Guiding Opinions establishes a new regulatory mechanism, linking up all ex ante, interim and ex post regulatory stages. It also strengthens a new regulatory mechanism supported by “Internet + Regulation” model for the development of credit-based supervision. Firstly, the new credit-based regulatory mechanism involves a wide range of industries, sectors and regions. Secondly, the new credit-based regulatory mechanism may have an extensive influence on enterprises. Finally, Enterprises with good credit records and those with illegal or dishonest conduct may be faced with significant differences in regulatory intensity and market conditions. Therefore, we kindly suggest that all enterprises evaluate and consider the requirements of the new credit-based regulation, and actively participate in and take advantage of the mechanism.