Foreign companies must start preparing for China's corporate social credit scoring system or risk "[dying] by the score" – the stark warning of a new report from the EU Chamber of Commerce in China (EUCCC) authored in conjunction with the consultancy Sinolytics.
China's Corporate Social Credit: a Comprehensive Compliance Enforcement System
Set to be fully implemented in 2020, China's corporate social credit system will monitor all aspects of a company's operations and seek to shape their behavior through blacklistings and joint punishments. Lawyers and experts alike suggest foreign companies take advantage of the system when conducting due diligence and localize their compliance programs.
By
Vincent Chow