China Races Toward Plan to Blacklist, Redlist Firma for Behavior
China is making a swift advances with a system for measuring the social creditworthiness of companies, a sweeping data-collection effort that could solidify Beijing’s control over foreign and domestic enterprises and possibly challenge the dominance of U.S.credit-rating companies.
The corporate social credit system (CSCS) would “penalise companies with poor compliance records by reducing their access to the market and subjecting them to public censure via “blacklists”, while rewarding consistently compliant companies with economic incentives and public praise via “redcoats,” the report said.
Though there’s been a lot of attention focused on whether China’s system could be used to target or punish foreign companies in China, or become a trade war weapon, the report’s authors said they didn’t find any evidence that social credit is currently being used this way.
The report said technology sophistication of the system has been overstated, both in China and abroad.
Source: Bloomberg #Dec09
https://www.bloomberg.com/news/articles/2020-12-09/china-races-toward-plan-to-blacklist-redlist-firms-for-behavior
#China #CorporateSocialCreditSystem #CSCS
China is making a swift advances with a system for measuring the social creditworthiness of companies, a sweeping data-collection effort that could solidify Beijing’s control over foreign and domestic enterprises and possibly challenge the dominance of U.S.credit-rating companies.
The corporate social credit system (CSCS) would “penalise companies with poor compliance records by reducing their access to the market and subjecting them to public censure via “blacklists”, while rewarding consistently compliant companies with economic incentives and public praise via “redcoats,” the report said.
Though there’s been a lot of attention focused on whether China’s system could be used to target or punish foreign companies in China, or become a trade war weapon, the report’s authors said they didn’t find any evidence that social credit is currently being used this way.
The report said technology sophistication of the system has been overstated, both in China and abroad.
Source: Bloomberg #Dec09
https://www.bloomberg.com/news/articles/2020-12-09/china-races-toward-plan-to-blacklist-redlist-firms-for-behavior
#China #CorporateSocialCreditSystem #CSCS
Bloomberg
China Races Toward Plan to Blacklist, Redlist Firms for Behavior
China is making swift advances with a system for measuring the social creditworthiness of companies, a sweeping data-collection effort that could solidify Beijing’s control over foreign and domestic enterprises and possibly challenge the dominance of U.S.…