Heilongjiang Province Social Credit Regulations

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[Source]https://www.hlj.gov.cn/n200/2022/0523/c35-11034477.html

Chapter I: General Provisions

Article 1: These Regulations are formulated on the basis of relevant laws and administrative regulations, and in consideration of the actual conditions in this province, so as to increase societal awareness of creditworthiness and levels of credit, to strengthen the establishment of the social credit system, to regulate social credit management, to optimize the business environment, and to protect credit subjects' lawful rights and interests.

Article 2: These Regulations apply to activities in this province's administrative region such as the establishment of a social credit environment, the management of Social Credit Information; incentives for the trustworthy, punishments for the untrustworthy; the protection of credit subjects' rights and interests such as in credit restoration; and the establishment of credit-based mechanisms for oversight and management.

Article 3: “Social Credit” as used in these Regulations refers to the state of natural persons', legal persons' and organizations other than legal persons' (' Credit Subjects') performance of legally-prescribed duties and legally-prescribed and contractual obligations in social and economic activities.

"Social Credit Information" refers to objective data and materials that may be used to identify, analyze, and judge the status of Credit Subjects‘’ social credit, including Public Credit Information and non-Public Credit Information.

Public Credit Information refers to Social Credit Information produced or acquired in the course of the lawful performance of duties or provision of services by Public Credit Information providing units such as state organs and organizations authorized by laws or regulations to have public affairs management functions.

Non-Public Credit Information refers to Social Credit Information produced or collected by Non-Public Credit Information providing units such as credit service establishments and other enterprises, public institutions, or social organizations in the course of activities such as the provision of services, production, or business activities and industry discipline management, as well as Social Credit Information information provided by credit subjects on themselves through means such as declarations, voluntary registration, voluntary reporting, or social pledges.

"Credit service establishments" refers to professional service bodies that are lawfully established, provide credit products and services to the public, and engage in credit rating, credit consultation, credit management, credit risk control, credit information services, and related business activities.

Article 4: Social Credit work shall adhere to the principles of Party leadership, government promotion, joint construction by society, information sharing, protection of rights and interests, combining incentives and punishments, and strengthening applications; to persist in advancing the establishment of creditworthiness in government affairs, commerce, and society, and judicial credibility.

Article 5: People's governments at the county level or above shall place the establishment of a social credit system within the Citizens' economic and social development plan, establish mechanisms for consultation and coordination, plan the advancement of the social credit system, and ensure expenses for the work in accordance with the principle of having fiscal authority correspond to responsibility for payments.

The provincial and municipal level people's governments shall organize the drafting of a plan for the establishment of the social credit system, and people's governments at the county level or above are to organize and implement efforts to establish the social credit system within their respective administrative regions in accordance with the plan.

Village (township) people's governments and neighborhood offices shall strengthen efforts on social credit and guide villages and urban communities to establish social credit at the basic level.

Article 6: The provincial and municipal people's governments shall establish a Public Credit Information platform (hereinafter simply 'credit platform') to uniformly publish social credit policies, aggregate, and open Social Credit Information, and to provide public credit services and support for the use of Public Credit Information. The provincial credit platform shall be connected with the national credit information sharing platform, and municipal level credit platforms shall be connected to the provincial credit platform. Provincial and municipal level institutions that are undertaking public credit work (hereinafter 'public credit work bodies') are responsible for the maintenance and management of the credit platform at that level.

The provincial and municipal level people's governments shall use modern technologies such as the internet, big data, cloud computing, and artificial intelligence, to promote the integrated development of social credit and big data, promote interconnectivity and information sharing between the credit platforms, and the government affairs services system and other application systems.

The provincial people's government shall plan the establishment of a financing credit services platform, promoting interconnectivity between the government affairs service platform and other application systems, including information such as on tax payments, social insurance payments, housing fund payments, import/export, utilities, real estate, intellectual property, and scientific research within the scope for aggregation, and supporting banks, insurers, guarantors, credit service establishments and other institutions that have a need in strengthening the use of Social Credit Information in the financing field.

Support financial institutions, credit reporting, and rating establishments, and other such credit service establishments in using big data and other information technology to strengthen tracking, monitoring, and early warnings, completing marketized mechanisms for risk distribution, mitigation, and compensation.

Article 7: The departments for the establishment and oversight of the business environment at the county level or above are the departments in charge of social credit for the corresponding administrative region, and are responsible for planning, coordinating, overseeing, and managing efforts on the establishment of a social credit system, and other relevant departments are responsible for advancing the establishment of the social credit within the scope of their duties in the respective industries or areas.

The provincial people's government's department in charge of social credit shall collaborate with relevant departments to draft management specifications for this province such as the supplemental directory of Public Credit Information, list of restraint measures for untrustworthiness, supplemental list of punishment measures for untrustworthiness, credit restoration system, standards for assessing government creditworthiness, and comprehensive Public Credit Information assessment measures; and is to publicly publish these after getting the people's governments' consent.

Article 8: Social credit work shall give play to the functions of industry associations and chambers of commerce as well as other social organizations, encouraging and guiding all aspects of society's participation in social credit publicity and education, demonstration and drive, and management services.

Chapter II: The Establishment of a Social Credit Environment

Article 9: All levels of people's government shall strengthen the establishment of creditworthiness in government affairs, persisting in administration in accordance with law, openness in government affairs, and keeping one's word; enhancing transparency in major decision making, increasing government credibility, and playing a role of leading by example and modeling in the establishment of a social credit system.

All levels of people's government and relevant departments shall strengthen the establishment of government creditworthiness in key areas such as government procurement, private-public partnerships, bidding and tendering, attracting investment, and local government debt; and must not fail to perform on policy commitments or lawfully concluded contractual obligations made to market entities on the grounds of adjustments to administrative divisions institutional functions, replacement of the responsible government personnel, or change of government sessions. Where commitments or contractual obligations cannot be performed for legally-prescribed reasons such as the national interests or societal public interests, it shall be done in accordance with legally-prescribed authority and procedures, and the financial losses of market entities suffered as a result are to be compensated in accordance with law.

All levels of people's government shall establish mechanisms such as for the assessment of government creditworthiness, records of government creditworthiness, and pursuing responsibility for government untrustworthiness; and shall strengthen education on creditworthiness for public employees to increase the level of creditworthiness in government affairs. Information on violations of laws and regulations, or untrustworthy breaches of contract by any level of people's government, relevant departments, and their staffs shall be included in records of government untrustworthiness.

People's governments at the county level or above shall organize and carry out the assessments of creditworthiness for lower level people's governments, and the results of the assessments share to be a major consideration in evaluating the performance of leadership groups and leading cadres. Civil servants' creditworthiness records are to be an important basis for evaluations, appointments, awards, and punishments.

Article 10: All industry regulatory departments shall strengthen the establishment of industry credit, establish industry credit records in accordance with relevant provisions, carry out activities such as publicity on creditworthiness, credit pledges, and credit risk alerts; increase demonstrations and publicity for market entities and the exposure of case examples on untrustworthiness, and strengthen credit management and services in fields such as production safety, product quality, circulation services, construction, e-commerce, and transport.

Market entities shall enhance awareness of rule of law and the spirit of contract, strengthening credit self-discipline in stages such as production and business, finance management, and labor employment, comply with industry credit rules and codes of professional conduct, and conduct business, perform on contracts in a creditworthy manner, and compete fairly. Market entities are encouraged to establish credit management processes, apply for credit information identification numbers, and collect and conveniently display their own Social Credit Information.

Industry associations, chambers of commerce, and other social organizations are encouraged to strengthen the establishment of industry credit, establish mechanisms for industry discipline, submit recommendations on industry standards, implement activities such as credit pledges, credit training, publicity on creditworthiness, and advocacy of creditworthiness, make creditworthiness an important part of the content in industry rules and agreements, to guide the corresponding industry in strengthening awareness of creditworthy business.

Encourage and support enterprises and public institutions, schools of higher learning, research institutions, social organizations, industry associations, chambers of commerce, credit service establishments, and the like to carry out social credit assessments, and to be responsible for the lawfulness, objectivity, veracity, and validity of the assessment outcomes.

Article 11: All levels of people's government shall strengthen the establishment of societal creditworthiness in fields such as medical care, social security, education and research, culture and travel, the environment, social organizations, and the online environment; establishing and completing norms for creditworthy operations, guiding the establishment of professional ethics, expanding the use of professional credit reports, and creating a social atmosphere that honors and practices creditworthiness.

Members of society shall follow the principle of creditworthiness, establish an awareness of credit, uphold honesty and keep promises, pay attention to their own credit status, and maintain their own positive credit.

Article 12: Judicial organs shall strengthen the establishment of judicial credibility, performing functions in accordance with law, having a judiciary that is strictly just, improving mechanisms for restraint and oversight, and advancing openness in stages such as review for prosecution, investigation and evidence collection, trial processes, judgment and ruling documents, and judicial enforcement in accordance with law and relevant provisions, to increase judicial efficacy, regulate judicial conduct, maintain fairness and equity, enhance judicial credibility, and increase societal satisfaction.

Article 13: All levels of people's government shall strengthen the establishment of a township creditworthiness environment and institutional systems for village credit, including new forms of agricultural business entities and other such village credit information in the Public Credit Information Directory and each level of Public Credit Information platform or other connectivity systems.

All levels of people's government and relevant departments shall strengthen digital empowerment, innovating and optimizing financial models and guiding financial institutions to strengthen credit financial services and the provision of credit lending products for small and medium-sized enterprises, privately-owned businesses, rural professional cooperatives, village collective economic organizations, and other credit subjects, to reduce the costs of financing.

Explore providing credit financial products for agricultural businesses to rural persons who have good credit, increasing the availability and convenience of credit lending.

Article 14: People's governments at the county level or above shall draft plans for creditworthiness education, and education on social morals, professional ethics, family values and individual morality.

Education departments and schools shall make creditworthiness education an important piece of elementary, secondary, and higher education students' ideological and character education. Departments such as for human resources and social security, and relevant professional training establishments shall include content such as on creditworthiness education and credit knowledge in occupational skills education and training.

Encourage and support schools of higher learning that have the capacity to establish majors or classes on credit management, and carry out research collaboration with enterprises, public institutions, social organizations, and research institutions, to cultivate professional credit services personnel.

Article 15: State organs shall strengthen publicity on the culture of creditworthiness, setting up examples of creditworthiness in the establishment of the spiritual civilization, awards selections, selection of examples of morality, and industry creditworthiness theme activities, to carry forward the Core Socialist Values.

Media such as radio, television, newspapers, and websites shall spread awareness of credit through means such as news reports, special features, and public interest advertisements, publicizing advanced examples of creditworthiness, and conducting public opinion oversight on conduct that harms the lawful rights and interests of credit subjects.

Article 16: People's governments at the county level or above shall guide the regulated development of the credit services industry, support credit service establishments in developing credit products, and expand the field of credit applications and services, to provide diverse and regular credit services to government departments, market entities, social organizations, and individuals.

Relevant departments and credit service establishments are encouraged to carry our cooperation with credit service establishments in the collection, aggregation, sharing, big data analysis, early risk alert, verification of cases of untrustworthiness, tracing of untrustworthy conduct, and other areas of Social Credit Information.

Encourage and support the China (Heilongjiang) pilot free trade zone, the Harbin new district, and all types of development zones and industrial parks in bringing in credit service establishments, to provide credit products and services for management activities and resident enterprises.

Chapter III: Management of Social Credit Information

Article 17: Activities such as the collection, aggregation, sharing, opening, and application of Social Credit Information shall comply with the principles of legality, propriety, necessity, and prudence, and must not endanger national sovereignty, security, and developmental interests; must not encroach on public safety or the public interest, and must not infringe state secrets, commercial secrets, and personal privacy.

Entities collecting, aggregating, sharing, opening, and applying Social Credit Information shall establish mechanisms for security management, confidentiality, and emergency response, and strengthen information security precautions to ensure information security.

Article 18: A cataloged management system is to be implemented for Public Credit Information. Public Credit Information catalogs include the National Basic Catalog of Public Credit Information and the province's supplemental catalog of Public Credit Information.

The supplemental catalog of Public Credit Information shall indicate the specific conduct corresponding to the information, and elements such as the providing unit, the data source, its character, its sharing and openness attributes, the display period, and update times, and be restricted to the following scope of information that reflects credit subjects' credit status:

(1) Registration information that reflects the Credit Subjects' basic circumstances;

(2) Information on the receipt of commendations and rewards as well as participation in volunteerism and charitable activities;

(3) Credit pledges made by credit subjects and information on their performance on them;

(4) Administrative management information such as on administrative permitting, administrative punishments, administrative compulsion, administrative confirmations, administrative expropriation, administrative payments, administrative rulings, administrative compensation, administrative rewards, and administrative oversight inspections.;

(5) Information on public enterprise and public institution services;

(6) Information in judicial ruling and judgment documents, arbitration documents, and administrative decision documents;

(7) Information on the refusal to pay taxes, social insurance fees, housing providence funds, administrative fees, government funds, and public service fees;

(8) Information on the refusal to perform obligations set forth in effective legal documents;

(9) Information on providing fake materials, by concealing the truth of matters, and by other deceptive or misleading acts;

(10) Other Public Credit Information as provided by provincial-level local regulations.

Information on administrative punishments made applying the simplified procedures is not to be entered into the supplemental catalog of Public Credit Information.

Article 19: The collection and aggregation of natural persons' Public Credit Information shall have citizen identification numbers as the associated matching identifier; where they do not have a citizen identification number, other valid identification numbers are to be the associated matching identifier.

The sole associated matching identifier for the collection or aggregation of legal persons' and unincorporated organizations' Public Credit Information shall be their uniform social credit code.

Article 20: The collection of natural persons' Social Credit Information shall be upon their consent with clear notice given of the goals, content, methods, and usage of the information collection as well as matters such as the rights and obligations for sharing it, except for information that laws and administrative regulations provide shall be displayed.

In the collection of natural persons' non-Public Credit Information, information on their income, savings, negotiable securities, commercial insurance, and real estate; as well as information on their paid taxes must not be collected; except where they have been clearly informed of the possible adverse consequences of providing this information, their written consent is obtained, and the uses are agreed to.

When collecting natural persons' credit information, information must not be collected on religious faith, blood type, illnesses, medical history, fingerprints, genetics, and other identifying information, as well as other information which laws and administrative regulations prohibit the collection of.

Article 21: Units providing Public Credit Information shall follow the time limits in the Public Credit Information catalog to send the information listed in the Public Credit Information catalog and corresponding effective legal documents to the credit platforms or input system in accordance with the following provisions:

(1) County Level and Village (township) level Public Credit Information providing units are to send to the unit at the level above;

(2) The provincial and municipal level Public Credit Information providing units are to send to the credit platform for that level, and where there is uniform aggregation of Public Credit Information for the corresponding industry, the provincial level unit is to send to the provincial credit platform;

(3) Administrative management information such as administrative permits, administrative penalties, administrative compulsion, administrative confirmation, administrative expropriation, administrative payments, administrative rulings, administrative compensation, administrative rewards, and administrative oversight inspection information; is to be sent through the provincial information display system;

(4) Pursuit of criminal responsibility for violations of the principle of creditworthiness, as well as information on untrustworthiness such as judgment default and false litigation, is to be uniformly sent to the provincial credit platform by the province's High People's Court.

The municipal level public credit work bodies shall send Public Credit Information to the provincial credit platform within three work days of the information being aggregated.

Credit subjects are encouraged to provide non-Public Credit Information to the credit platform and to non-Public Credit Information collecting units, and authorize its integration, sharing, opening, and application.

Units and individuals providing Social Credit Information shall be responsible for the legality, veracity, accuracy, and completeness of the information.

Article 22: As needed to perform duties in accordance with law, public credit work bodies and Public Credit Information providing units shall share Public Credit Information as provided by the Public Credit Information catalogs, but must not use it other than for the performance of duties.

Article 23: People's governments at the county level or above shall promote the orderly opening of Public Credit Information, strengthen cooperation on credit information with credit service establishments, industry associations, and chambers of commerce, as well as other organizations, to promote the integrated application of Public Credit Information and non-Public Credit Information in areas such as commerce, finance, and the people's lives.

Except for Public Credit Information that laws, regulations, and relevant state provisions provide is not to be made open, the public credit work bodies and Public Credit Information providing units shall lawfully make Public Credit Information open in accordance with the following provisions:

(1) Public Credit Information that shall be displayed in accordance with laws, regulations, and relevant state provisions are to be made open with no conditions;

(2) Inquiries into other Public Credit Information are to be provided in accordance with these Regulations or made open to credit service establishments, financial institutions, social organizations, and public enterprises and public institutions in accordance with agreements;

(3) Other situations for opening provided for in laws, regulations, or state provisions.

Non-Public Credit Information collecting units and credit subjects are encouraged to open non-Public Credit Information either voluntarily or in accordance with agreements.

The personal information of natural persons in Social Credit Information, such as names, birthdates, citizen identification numbers, and numbers of other valid identification documents, addresses, and telephone numbers must not be made open, except where laws or administrative regulations provide it shall be made open or upon the consent of the individual, but necessary processing to desensitize it shall be conducted.

Article 24: Public credit work bodies shall establish a system for inquiries into Public Credit Information to provide convenient inquiry services to the public through channels such as credit websites, service windows, mobile terminals, and automated terminals.

Credit entities have the right to make unlimited free inquiries into Public Credit Information about themselves. Within the scope of their authorization, the relevant credit subjects may make inquiries into the Public Credit Information conditionally opened by other credit subjects, and use it for the agreed-upon purposes in accordance with law.

Credit subjects may make inquiries to non-Public Credit Information collecting units on their own credit information. Natural persons have the right to make two free annual inquiries to non-Public Credit Information collecting units on their own credit information.

Chapter IV: Rewards for Trustworthiness and Punishment for Untrustworthiness

Article 25: Administrative industry regulatory departments at the county level or above shall collaborate with relevant departments to draft standards for designations on the list of targets for incentives for trustworthiness, and publicly publish these after the people's government for that level agrees.

Administrative industry regulatory departments at the county level or above shall make designations in accordance with the designation standards and lawfully publish the list of subjects getting incentives for trustworthiness.

Article 26: The departments in charge of social credit for people's governments at the county level or above shall compile and update the lists of reward measures for trustworthiness in conjunction with relevant departments, and release them to the public. The list of reward measures for trustworthiness may be determined within the following scope:

(1) Giving facilitated services such as simplified procedures in implementing administrative management and public services;

(2) Adding points, increasing levels, and giving other measures in government procurement, bidding and tendering in government invested projects, and public resource trading;

(3) Where other requirements are equal, make them priority choices or give them key supports in government fund allocations, government policies, and program supports;

(4) Where other requirements are equal, make them priority choices for award selections;

(5) Conducting publicity or promotions on government portal websites, credit websites, government service websites or other media;

(6) Other reward measures provided for by the state or this province.

People's governments at the county level or above shall establish and complete creditworthiness scoring management mechanisms, expand scenarios for credit application, and give corresponding benefits and facilitation to trustworthy natural persons, but the legally-prescribed rights and basic public services enjoyed by natural persons must not be limited on the basis of creditworthiness scoring.

Financial institutions are encouraged to develop incentive products for trustworthiness such as preferential credit lending and financing facilitation, reducing the cost of market transactions.

Article 27: Administrative departments for industry regulations shall identify the untrustworthy conduct of credit subjects based on effective judicial rulings and judgments, and administrative decision documents such as for administrative punishments and administrative rulings, as well as other documents that laws, regulations, or decisions or orders of the State Council provide may be the basis for designating conduct as untrustworthy; and record it in their credit records.

Article 28: Designation standards for lists of seriously untrustworthy entities are to be enforced in accordance with laws, administrative regulations, and state provisions. Designation standards for lists of seriously untrustworthy entities that are implemented only within this Province shall be provided for in provincial level local regulations.

Administrative industry regulatory departments at the county level or above shall make designations for the list of seriously untrustworthy entities in accordance with the designation standards, and where making a designation as a seriously untrustworthy entity, they shall issue a written decision and notify them of the corresponding reasons, basis, time period, requirements for removal, and remedy channels.

Credit subjects who have been entered by a people's court into a Judgment Defaulters List shall be designated as seriously untrustworthy entities.

Article 29: Where credit subjects have any of the following seriously untrustworthy conduct, they shall be entered into the list of seriously untrustworthy entities:

(1) administrative organs do not perform legally-prescribed duties or contractual obligations produced through activities such as encouraging investment, government procurement, bidding and tendering in government investment projects, or public resource transactions, where the circumstances are serious;

(2) State organs, state-owned enterprises, public institutions, or large-scale enterprises fail to perform obligations to promptly pay small, medium-sized, and micro-enterprise funds, and the circumstances are serious;

(3) Seriously endangering the public's physical health or security in their lives, in areas such as food and drug safety, ecology and environment, project quality, production safety, fire safety and mandatory product certification;

(4) Seriously disrupting the order of fair market competition or the social order such as by bribery, tax evasion, tax fraud, malicious debt evasion, malicious delay in payment of debts or for services, malicious delay in paying wages, illegal fund-raising, contract fraud, pyramid sales, operating a business without a license, production or sale of fake or shoddy goods, intentional infringement of intellectual property rights, leasing or lending bidding qualifications, collusive bidding, false advertising, infringing the lawful rights and interests of consumers or securities investors, seriously undermining the order of cyberspace transmissions, and assembling to disrupt social order;

(5) After judicial or administrative organs make a judgment or ruling, refusing to perform on it despite being able to, evading the enforcement of legally prescribed obligations and seriously impact the credibility of the judicial or administrative organ;

(6) Refusing or avoiding military service, refusing or delaying the expropriation of civil-use resources or impeding the modification of expropriated civil-use resources, endangering national defense interests or destroying national defense facilities or other refusals to perform national defense obligations;

(7) Copying or plagiarising others' research or academic achievements; faking or altering research data and conclusions; acting deceptively to obtain science and technology plan projects and funding as well as rewards or honors, or other conduct seriously violating the requirements for creditworthiness in research.

(8) Other serious untrustworthy conduct provided for in other laws, administrative regulations, provincial level local regulations, and state provisions.

Article 30: The adoption of restrictions and punishment measures for untrustworthiness against credit subjects shall comply with the principles of legality, relevance, and proportionality; be related to the untrustworthy conduct, correspond to the nature, circumstances, and extent of social impact of the untrustworthy conduct, and have restraints or punishments for untrustworthiness of appropriate severity employed in accordance with the list of restraints and punishments for untrustworthiness.

Where minor or incidental untrustworthy conduct is promptly corrected or remedial measures are employed, and no harmful outcomes were caused to society, the restraints or punishments for untrustworthiness are to be waived, but warnings may be given in an appropriate manner.

Where credit subjects are unable to perform their legally-prescribed duties, legally-prescribed obligations, or contractual obligations due to natural disasters, accidents, public health incidents, social safety incidents, or other emergency incidents, measures such as appropriate extensions of the time for performance, cautious designation of untrustworthy conduct, or reducing the period for handling credit restoration may be employe in accordance with relevant state or provincial provisions.

The carrying out of restraints or punishments for untrustworthiness that have not been released to the public is prohibited.

Article 31: The list of restraint measures for the untrustworthy shall be restricted to the following scope:

(1) Facilitated services must not be applied in administrative management and public services;

(2) Canceling facilitated services already given in administrative management and public services;

(3) Other restraint measures provided for in laws, administrative regulations, provincial level local regulations, and state provisions.

Lists of punishments for untrustworthiness include the National Basic List of Punishment Measures for Untrustworthiness and this province's supplemental list of punishment measures for untrustworthiness. The supplemental list of punishment measures shall be formulated based on provincial level local regulations and be limited to the following scope:

(1) Having a meeting;

(2) Restricting participation in government procurement, bidding and tendering in government invested projects, and public resource trading, or measures such as reducing points or lowering levels;

(3) Restricting receipt of government funds and government policies or program supports;

(4) They must not be selected for awards;

(5) Other punishment measures as provided by provincial-level local regulations.

Provincial-level local regulations providing for the punishment measures against untrustworthiness in the preceding paragraph, they shall concurrently provide the time period.

Article 32: Where state organs and state-owned enterprises and public institutions that are entered into the list of seriously untrustworthy entities do not promptly correct their untrustworthy conduct in accordance with law, the departments in charge of social credit for the people's governments at the county level or above shall meet with their principle responsible person and order that corrections be made in a set period of time; where corrections are not made in that time, responsibility shall be pursued in accordance with law, and they are to be ordered to make a public pledge on the time and measures for corrections in news media.

Where state organs and state-owned enterprises and public institutions are entered into the list of seriously untrustworthy entities, the designating unit shall report it to the people's government or competent department at the level above, as well as the auditing organ. Where the staff of state organs and state-owned enterprises and public institutions are entered into the list of seriously untrustworthy entities, the designating unit shall report it to their unit and relevant disciplinary inspection organs (bodies) and organizational or human resources department. Units and bodies receiving reports shall address seriously untrustworthy entities in accordance with discipline and law, and notify the designating unit and the department in charge of social credit for that level of the results of the handling.

Article 33: Where market entities are entered into the list of seriously untrustworthy entities, punishment measures shall be carried out in accordance with law against their legal representatives or principle responsible persons, actual controllers, and directly responsible persons who impact debt performance, and the information on untrustworthiness is to be recorded as natural persons' Public Credit Information.

Article 34: Industry associations and chambers of commerce are encouraged to employ measures such as key recommendations and increasing membership levels for trustworthy members based on their charters, and employ measures such as reducing membership levels and canceling membership credentials for untrustworthy members.

Market entities are encouraged to employ measures for trustworthy credit subjects such as giving preferential facilitation, increasing transaction opportunities, and reducing transaction costs; and to employ measures against untrustworthy credit subjects, such as eliminating preferential facilitation, reducing transaction opportunities, and increasing transaction costs.

Chapter V: Protection of Credit Subjects' Rights and Interests

Article 35: Credit Subjects have the right to know about conditions such as the collection, aggregation, sharing, opening, and use of Social Credit Information related to them, as well as the sources of information contained in their credit reports, and any changes to that information, etc.

Credit subjects entered into the list of seriously untrustworthy enjoy the right to make statements and defenses. Where credit subjects have objections, the designating unit shall conduct a reexamination of the matter, grounds, and evidence, and make a decision on handling within 3 working days of receiving the objection application. Where a decision is made to adopt it, the designating units shall remove them from the list of seriously untrustworthy entities and relevant departments shall stop implementing punishment measures for untrustworthiness; where a decision is made not to adopt it, the designating units shall explain the reasons.

Article 36: Public Credit Information providing units, Public Credit Information work bodies, and non-Public Credit Information collecting units handling credit information shall comply with laws, regulations, and agreements with credit subjects, and must must not carry out the following conduct:

(1) Using natural persons' Social Credit Information that was acquired without authorization, through compelled authorization, or through a single lifetime authorization;

(2) Illegally obtaining, sharing, opening, transmitting, and using Social Credit Information;

(3) Leaking, altering, destroying, stealing, selling, fabricating, or illegally deleting Social Credit Information;

(4) Issuing fake credit assessment reports;

(5) other acts prohibited by laws or regulations.

Article 37: Information on credit subjects' trustworthiness may be displayed long-term in accordance with law, but where the credit subjects ask that information not be displayed it must not be displayed.

The display period for information on untrustworthiness is to be implemented in accordance with relevant state provisions. Where the display period is complete, the display shall be stopped and it is to be transferred for archival storage and must not be displayed again.

Article 38: Where Public Credit Information discover that there are errors in Public Credit Information, or it has become invalid or changed, they shall make corrections within 3 working days of the discovery and send the corrected information to the credit platform.

Where non-Public Credit Information collecting units discover that there are errors in non-Public Credit Information, or that it has become invalid or changed, they shall make corrections within 3 working days of the discovery in accordance with law and agreements.

Where the basis for a designation of untrustworthy conduct is revoked, found to be illegal, found invalid, or changed, the Public Credit Information providing units shall issue the updated information to the public credit work bodies within two working days of the change to the basis, and the public credit work bodies shall revoke or modify the information within one working day.

Article 39: Where credit subjects feel that their Social Credit Information contains errors or omissions, has been displayed beyond time limits, or has violated their lawful rights and interests such as in commercial secrets, personal privacy, or personal information, they have the right to submit a written objection application to the Public Credit Information providing unit, public credit work bodies, or non-Public Credit Information collecting unit and explain the reasons.

Where it is within the scope of those handled by the corresponding unit, they shall make an objection label within one working day of receiving the objection application and make a decision on handling within three working days; and where it is not within the scope handled by the corresponding unit, they shall notify the credit subject of the unit with authority to handle it. Where it is necessary for other units to help in verification, a decision on handling shall be made within 7 working days, and the assisting unit shall give feedback on the outcome of the verification within 2 working days of receiving the notice. Time needed for examinations, testing, quarantine, evaluations, and expert appraisals is not calculated into the time for handling objections.

Where the basis for the objection application is sustained through verification it shall be promptly corrected and the objecting applicant is to be notified; where credit information has already been shared with other systems or websites, the relevant units shall handle changes within 3 working days of receiving the corrected information. Where the basis for the objection application is not sustained, a decision is to be made not to make corrections, and the reasons shall be explained.

Article 40: Where untrustworthy entities correct untrustworthy conduct and eliminate negative impacts in accordance with law, they may apply for credit restoration to the designating unit or the public credit work bodies. The provincial-level administrative industry regulation departments shall draft specific provisions on the restoration of credit, indicating the means and procedures for restoration.

Where conditions are met for credit restoration, the unit accepting the application shall promptly stop the display of the information on untrustworthiness in accordance with relevant provisions, remove them from the list of untrustworthy entities, and notify the credit subject of the credit restoration. After restoration is complete, the implementation of restraint and punishment measures shall be promptly stopped.

Article 41: Where credit subjects feel that administrative acts in the collection, aggregation, sharing, opening, and use of Public Credit Information and other related activities violated their lawful rights and interests, they may apply for an administrative reconsideration or initiate administrative litigation in accordance with law.

Where credit subjects feel that the acts of non-Public Credit Information collecting units violated their lawful rights and interests, they may make a complaint to a municipal or county level people's governments' department in charge of social credit. The departments in charge of social credit receiving the complaints shall promptly verify and handle them, and respond to the complaint in writing within 20 working days of receiving them.

Chapter VI: Credit Oversight and Management Mechanisms

Article 42: People's governments at the county level or above shall establish and complete credit oversight and management mechanisms, use the credit pledge system in administrative management mechanisms, increase the precision of oversight and management, reduce the costs of system transactions, and stimulate the vitality of market entities.

Article 43: The departments in charge of social credit of people's governments at the county level or above shall collaborate with relevant departments to establish digitalized and automated mechanisms for incentives and punishments, and embed the use of credit platform inquiries into Public Credit Information in administrative management work processes such as administrative permitting and administrative oversight.

The departments in charge of social credit of people's governments at the county level or above, in conjunction with relevant departments, are to strengthen oversight and management of credit service establishments, establish a credit pledge system for credit service establishments, and complete credit record mechanisms for credit service establishments and practitioners.

Article 44: State organs and organizations authorized by laws or regulations to have public affairs management functions shall make inquiries into public credit reports through the credit platform and apply Public Credit Information in carrying out the following activities in accordance with law:

(1) administrative permitting, proof matters, and other administrative management and public services;

(2) Government procurement, bidding and tendering in government-invested projects, and public resource transactions;

(3) Government funds allocations and government policies and program supports;

(4) Selection for awards;

(5) Other activities provided for in laws, regulations, or state provisions.

Article 45: When credit subjects apply to handle administrative permits, proof matters, and other government service matters that use the credit pledge system, they may voluntarily choose to employ the credit pledge system for high-efficacy and convenient handling, and where they opt not to or are unable to make pledges, it is to be handled in accordance with ordinary procedures. Seriously untrustworthy entities and credit subjects that have made false pledges or failed to perform on pledges must not use the credit pledge system until credit restoration is completed.

Where credit subjects opt to use the credit pledge system to handle administrative permitting matters and some of the application materials are incomplete but they pledge in writing to provide them within the time provided, the administrative organs shall preliminarily accept it; and after a written pledge to meet relevant requirements and submit relevant materials, they shall issue the administrative permitting decision on site.

Where credit subjects opt to employ the credit pledge system to handle proof matters, after a written pledge is made to comply with relevant provisions, the administrative organs is not to solicit the relevant proofs again and is to handle the relevant administrative matters based on the written pledge.

Article 46: Within 2 months of making administrative permitting decisions using the credit pledge system, administrative organs shall verify the authenticity and performance of the credit pledge. Where it is discovered that credit subjects failed to perform on pledges or make false pledges, they shall be given guidance in accordance with law or ordered to make corrections in a set period of time; and where credit subjects still do not perform on the pledges, do not make corrections within the set time period, or are still do not comply with legally-prescribed requirements after making corrections, revoke the administrative permits or give administrative punishments in accordance with law.

Article 47: Public credit work bodies are responsible for carrying out comprehensive public credit assessments and sending the results of the assessments to relevant administrative organs, financial institutions, industry associations, chambers of commerce, and other units for their consideration and use.

The provincial level industry regulatory departments may establish mechanisms for industry credit assessments based on relevant provisions, and guide lower level industry regulatory departments in carrying out industry credit assessments.

Article 48: Administrative organs shall comprehensively use comprehensively public credit assessments and industry credit assessment results to divide the subjects of oversight and management by level and type, and conduct oversight and management in accordance with the following provisions:

(1) For those with better credit and lower risk, the proportion and frequency of spot inspections may be reasonably reduced;

(2) For those with normal credit risk, spot checks are to be in accordance with normal proportions and frequencies;

(3) For those who have broken laws or are untrustworthy with a higher risk, appropriately increase the proportion and frequency of spot checks, and implement strict oversight and management in accordance with laws and regulations.

Article 49: Municipal and county level administrative organs shall strengthen the extent of oversight inspections in fields that are directly related to the security of the masses in their persons and property, such as food and drug safety, the ecology and environment, production safety, eldercare and childcare, and urban operational security, and pursue responsibility for unlawfulness and untrustworthiness in accordance with law.

Municipal and county level administrative organs may employ the following oversight inspection measures for suspected violations of social credit laws and regulations, and relevant units and individuals shall cooperate:

(1) Enter venues related to the conduct under investigation to conduct inspections;

(2) Question the units and individuals being investigated, and request that they provide data, materials, and technical support related to the acts being investigated;

(3) Make inquiries into and reproduce contracts, receipts, electronic data, a/v materials, and other materials related to the conduct being investigated;

(4) Other oversight and management measures as provided by laws or regulations.

Article 50: People's governments at the county level or above shall display credit subjects' credit pledge matters on government portal websites, credit websites, and government affairs service websites, and accept societal oversight.

Chapter VII: Legal Responsibility

Article 51: Where these Regulations are violated by Public Credit Information providing units, public credit work bodies, and their staffs having any of the following conduct, an authorized organ is to order corrections, and where the circumstances are serious, give sanctions in accordance with law to the principle responsible person, principle responsible managers, and other directly responsible persons. :

(1) failure to collect, aggregate, share, open, and use Public Credit Information as provided;

(2) Failure to designate seriously untrustworthy entities as provided;

(3) Failure to carry out rewards for trustworthiness and restraining and punishment measures for untrustworthiness, or carrying out restraint or punishments that are not on the list of punishments measures for untrustworthiness, or increasing their severity;

(4) failure to perform duties to display information on untrustworthiness, handle objections, or restore credit information as provided;

(5) Failure to establish mechanisms for Public Credit Information security management, confidentiality, and emergency response as provided or failure to perform information security management duties, endangering information security;

(6) Other conduct abusing professional powers, dereliction of duties, or improper conduct for personal gain.

Article 52: Where these Regulations are violated by non-Public Credit Information collecting units and their staffs having any of the following conduct, the municipal or county level departments in charge of social credit are to order that corrections be made in a set period of time, and fine the unit between 50,000 and 100,000 RMB; and where the circumstances are serious, the fine is to be between 100,000 and 200,000 RMB; directly responsible staff are to be fined between 10,000 and 30,000 RMB, or between 30,000 and 100,000 RMB where the circumstances are serious; and where there are unlawful gains, they are to be confiscated in accordance with law.

(1) Using natural persons' Social Credit Information that was acquired without authorization, through compelled authorization, or through a single lifetime authorization;

(2) Illegally obtaining, sharing, opening, transmitting, or using Social Credit Information;

(3) Leaking, altering, destroying, stealing, selling, fabricating, or illegally deleting Social Credit Information;

(4) Issuing fake credit assessment reports;

Chapter VIII: Supplementary Provisions

Article 53: Where laws and regulations have separate provisions for the management of Social Credit, follow those provisions.

Article 54: Public enterprises and public institutions as used in these regulations refers to specified enterprises and public institutions that provide the public with products and services such as education, healthcare, water, electricity, gas, heat, environment, and public transportation, which are directly related to the public interest.

Article 55: These Regulations enter into force on July 1, 2022.

 

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