The Digital Hand: How China's Corporate Social Credit System Conditions Market Actors


China’s Corporate Social Credit System (SCS), the innovative and comprehensive vision of using modern technologies to monitor, condition and steer market participants, is moving decisively forward with its planned rollout in 2020. Until now, the discussion has focused primarily on the potential impact of the SCS on individuals in China, while the ramifications of the Corporate SCS have remained largely under the radar. To address this, the European Chamber in cooperation with Sinolytics released a major report that details the acute disruptions that European companies will face, and what they must do to ensure compliance.

It comprises a diverse range of rating requirements, which form the basis for calculating regulatory ratings awarded to all market actors. Companies’ behaviour will be continually monitored, with scores being adjusted accordingly. If businesses fail to clearly grasp all aspects of the System and what they need to do to comply, they risk serious repercussions like sanctions or even blacklisting

Read English press release and Chinese press release.

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