Executive meeting seeks to enhance strength of socialist market economy
China will adopt policy steps to optimize the mechanism for deterring
acts of bad faith and refine the social credit system to underpin the
development of the socialist market economy, the State Council's
executive meeting chaired by Premier Li Keqiang decided on Wednesday.
"In recent years, China's social credit system has continued to
develop. A market economy relies on credit, and a credit-based economy
must follow the rule of law. Work in this regard will be effectively
carried out pursuant to laws and regulations," Li said.
Those at the meeting on Wednesday decided on measures to refine the
bad-faith deterrent mechanism to promote orderly and healthy development
of the social credit system.
Administrative departments must determine acts of bad faith on the
basis of legally binding documents. The scope and procedures for sharing
credit information will be standardized. The principle of legality and
necessity will be observed when deciding whether and to what extent
credit information is shared and disclosed.
The meeting underlined the need to strengthen information security
and privacy protection. Illegal collection and transaction of credit
information will be strictly cracked down on.
"In the development of the social credit system, it is important to
pay attention to protecting personal privacy and trade secrets. Credit
reference will be conducted in accordance with law, with a science-based
scope, definition and appropriate penalties. Information must be used
in a safe and secure manner," Li said.
The identification of lists of entities that have carried out serious
acts of bad faith will be better regulated. The list will be limited to
those who put public health and safety in grave jeopardy, seriously
sabotage fair market competition order or disrupt normal social order.
The list will not be willfully expanded without authorization.
Punishment against bad-faith acts will be enforced in accordance with
laws and regulations, to make sure that penalties are meted out
commensurate with dishonest behaviors.
A credit repair mechanism will be established. Entities will be
allowed to fix negative credit records, unless otherwise stipulated by
laws and regulations, should they correct dishonest behaviors and
eliminate their adverse impact.
The meeting also decided on measures to advance high-quality
development of the credit reference sector. Cross-sectoral and
cross-regional connectivity of credit information involving finance,
government affairs, and public services will be promoted as provided by
Market access of individual credit reference agencies will be
promoted in an active yet prudent manner, and openness of the credit
reference sector will be scaled up.