China’s Corporate Social Credit System: How businesses can prepare
The system touches on virtually all aspects of a company’s business operations in China. It assesses the performance and demeanor of companies, by analyzing topic-specific ratings (e.g. tax, customs and environmental protection) and compliance records (e.g. on anti-monopoly cases, data transfers, pricing and licenses). The automated system collects data, processes and rates it against the defined requirements. Based on their rating, Chinese authorities will reward businesses with “good” and sanction those with “bad” behaviour.
China has already introduced the system. It is expected to be fully implemented by the end of 2020.