Policy steps take aim at bad faith acts
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 sciencebased 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 law.
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.