Bei­jing eyes black­list to reg­u­late mar­ket en­ti­ties that break the law

Global Times US Edition - - BIZUPDATE -

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.

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