What Is Social Credit?

The social credit system is also called the national credit management system or the national credit system. The establishment and improvement of the social credit system is one of the important signs that China's socialist market economy is constantly maturing. The social credit system is based on a relatively complete legal and regulatory system; it takes the establishment and improvement of credit information sharing mechanisms as its core; it is driven by the cultivation and formation of the credit service market; it is supported by the continuous improvement of the main competitiveness of the credit service industry; National social governance mechanism guaranteed by the government's strong regulatory system.

Social credit system

For the modern market trading environment, credit is a capability built on trust, and the ability to obtain funds, materials, and services without paying immediately. The party accepting trust pays for the funds, materials, and services obtained within the time period that it accepts, and the above time period must also be recognized by the trusting party. Without credit, there will be no order, and the market economy cannot develop healthily.

Poor credit status is our country

A perfect social credit system is the prerequisite for credit to function. It guarantees that creditors and trustees follow certain rules to reach transactions and ensure the fairness and efficiency of economic operations. There are three functions:

1. The social credit system has a memory function and can keep records of those who have broken faith;

2. The social credit system has a revealing function, can promote good and punish evil, and improve economic efficiency;

3. The social credit system has an early warning function and can prevent dishonesty.

Enterprise credit files should have five characteristics:

Comprehensiveness of information: The comprehensiveness of data makes the formed credit archives more socially valuable. The credit of an enterprise contains public regulatory information of government functional departments at various levels in various regions, such as qualification permits, quality inspections, rewards and punishments, and litigation.

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A complete credit system is composed of a series of indispensable parts or elements. These parts or elements divide each other's labor, cooperate with each other, and guard each other together

There are two main models for the construction of social credit systems in developed countries. One is the credit represented by the United States.

Establishing a social credit system is development

The establishment of a social credit system is a response

In order to accelerate the construction of China's social credit system and further improve the socialist market economy system,

On October 20, 2011, Premier Wen Jiabao of the State Council presided over the meeting

Social credit system planning

Under the leadership of the National Development and Reform Commission and the People's Bank of China, the "Outline of Social Credit System Construction Planning (2014-2020) (submission for review)" prepared by the member units of the National Credit System Construction Joint Meeting has been reported to the State Council, Principles passed. The "Outline" proposes that in the next step, the construction of the national social credit system will be carried out in full accordance with "a set of organizational system, two top-level designs, three key measures, four major areas, and five major carriers." The four key areas are to accelerate the construction of government integrity , business integrity , social integrity , and judicial credibility . ^[6] On June 14, 2014, the State issued the Notice of the State Council on Printing and Distributing the Outline of the Construction of the Social Credit System (2014-2020) ^[3] .

Social credit system phase completed

The work related to the construction of the social credit system at the national level is broken down into three stages, that is, before June 2014, 2015, and 2017, each work has clearly identified the central ministries and commissions that lead and cooperate with clear powers and responsibilities. Among them, the tasks to be completed before the end of June 2014 include: promoting the deployment and establishment of a unified credit information platform, and gradually incorporating credit information such as finance, industrial and commercial registration, tax payment, social security payment, traffic violations, etc .; proposing a plan to strengthen the construction of the government's integrity system; Propose a plan to establish a unified social code system for citizens based on citizen ID cards; establish a unified social credit code system for legal persons and other organizations based on organizational codes.

The tasks to be completed in 2015 include the following projects: advancing the building of business integrity; introducing and implementing a system of government integrity; introducing and implementing a unified social credit code system for citizens based on citizen ID numbers; and introducing and implementing organizations based on organizational codes Legal persons and other organizations unified social credit code system. The task to be completed in 2017 is to basically build a unified platform that integrates credit information such as finance, industrial and commercial registration, tax payment, social security payment, and traffic violations to realize resource sharing. ^[7]

In October 2018, relevant social credit legislation has been incorporated into the National People's Congress legislative plan and entered the fast track. If it progresses smoothly, China's basic social credit laws and regulations are expected to be promulgated and implemented within two to three years. ^[8]

In April 2019, the National Medical Security Administration announced the Regulations on the Use of Medical Security Funds (Draft for Soliciting Opinions). The Draft for Soliciting Opinions states that the State Council s medical security administration department is responsible for credit management in the national medical security field and is incorporated into the social credit system. Units and individuals that violate relevant regulations may be given disciplinary measures such as public exposure and inclusion in the list of joint disciplinary targets for dishonesty ^[1] .

Social credit system policies and measures

On July 16, 2019, the General Office of the State Council issued the Guiding Opinions on Accelerating the Construction of the Social Credit System and Building a New Credit-based Supervision Mechanism, which proposed four measures and policies.

The first is to innovate credit supervision in advance. Establish and improve the credit commitment system, and promptly deal with relevant administrative licensing matters that the applicant promises to meet the approval conditions and submit materials, and encourage market entities to actively make credit commitments to the society; make full use of various types of government service windows at all levels, and explore business operators Integrity education before admission; actively expand the application of credit reports, and encourage various market entities to apply credit reports more widely and actively in production and operation.

The second is to strengthen credit supervision in all matters. Comprehensively establish the credit records of market entities, and record the credit behavior of market entities in a timely, accurate, and comprehensive manner, especially by keeping traces of untrustworthy records, so that they can be checked, verified, and traced; establish a voluntary credit information registration mechanism to encourage market entities to " "Credit China" website or other channels to voluntarily register credit information; carry out comprehensive coverage, standardization, and public welfare comprehensive evaluation of public credit to provide a more accurate basis for credit supervision; vigorously promote credit classification and supervision, and implement differences based on the credit status of market entities Regulatory measures.

The third is to improve credit supervision after the event. We will improve the identification mechanism of the target of joint disciplinary actions against dishonesty, urge the subject of the dishonest joint punishment to rectify within a time limit, carry out intensive joint disciplinary measures against dishonesty, resolutely implement market and industry forbidden measures in accordance with the law, investigate the responsibility for illegal dishonesty, and explore the establishment of credit repair mechanisms.

The fourth is to strengthen the support and guarantee of credit supervision. Improve the level of credit supervision informatization and form a credit supervision coordination mechanism; vigorously promote the public disclosure of credit supervision information to achieve should be open and full disclosure; give full play to the supporting role of Internet + and big data in credit supervision and achieve credit The regulatory data can be compared, the process can be traced, and the problems can be monitored; the credit information security and the protection of market entities' rights and interests are effectively strengthened, and industry organizations and credit service agencies are actively guided to coordinate supervision. ^[9]