Beijing eyes blacklist to regulate market entities that break the law
A blacklist has been proposed for regulating discredited market entities that have broken the law, a move that an expert said showed China’s tougher enforcement in building its social credit system by expanding supervision in industry and commercial sector.
The State Administration for Market Regulation (SAMR) on Wednesday unveiled a draft for supervising entities that seriously violate the law. The draft is open for public comment until August 10.
The SAMR aims to forge a unified management system via setting up a blacklist, which will include market entities that seriously violate laws in industries such as food, medicine, cosmetics, special equipment and e-commerce.
Entities that produce or sell counterfeit and inferior drugs or pharmaceuticals, medical devices and cosmetics companies that are ordered to suspend production and business for ratification will be put on the list, the SAMR said.
Companies producing infant formula, milk powder and food supplements for babies that were administratively punished will also be placed on the list.
Such efforts will help clamp down illegal behavior by domestic enterprises that are closely related to people’s health, safety and property, Qiu Baochang, an expert at the China Consumers’ Association, told the Global Times on Wednesday.
Relevant departments are expected to increase penalties on violations through legislation, Qiu said, adding that “a unified law, not only for separate industries, is needed for managing discredited behavior in the domestic market.”
The SAMR said that relevant departments will increase penalties for such discredited behavior. For instance, entities on the list are likely to be restricted or barred from registration or obtaining administrative licenses.
Corporate executives on the list will not be allowed to hold the post of legal person of other companies. Also, honorary titles will not be granted or will be revoked from entities with such discredited behavior, according to the SAMR.
Apart from industry and commercial sector, China has also made strenuous efforts to regulate personal credit behavior during recent years.
As of May, about 14.1 million people had been blacklisted for bad credit records in China, according to the National Development and Reform Commission (NDRC). As of the end of May, 5.87 million people had been banned from buying high-speed rail tickets because of low social credit ratings, the NDRC said.