Hunan Province Social Credit Regulations

The "Hunan Provincial Social Credit Regulations" were adopted at the 31st meeting of the Standing Committee of the Thirteenth People's Congress of Hunan Province on May 26, 2022, and are hereby promulgated, to come into force on September 1, 2022.

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 regulate the oversight and management of Social Credit, to preserve credit subjects' lawful rights and interests, to advance the establishment of the social credit system, and to increase the entire society's awareness of creditworthiness.

Article 2: These Regulations apply to activities in this province's administrative region such as the establishment of a social credit environment, the collection and disclosure of Social Credit Information; the application of Social Credit Information; the protection of credit subjects' rights and interests; and the regulation and development of the credit services industry.

“Social Credit” as used in these Regulations refers to the state of natural persons', legal persons', and organizations other than legal persons' (hereinafter collectively called 'credit subjects') performance of legally-prescribed and contractual obligations in social and economic activities.

Social Credit Information as used in these Regulations, refers to objective data and materials that can be used to identify, analyze, and asses Credit Subjects' credit statuses, and includes 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 state organs or organizations authorized by laws or regulations to have public affairs management functions (hereinafter collectively referred to as Public Credit Information providing units） Non-Public Credit Information refers to credit information produced or acquired by credit service establishments, industry associations and chambers of commerce, and other enterprises and public institutions or organizations (hereinafter collectively referred to as Non-Public Credit Information providing units) in the course of business or providing services, as well as credit information that credit subjects provide on themselves through declarations, voluntary reporting, social pledges, or other forms.

Article 3: Efforts on the establishment of the social credit system shall follow the principles of being promoted by the government with joint societal participation, information sharing, protecting rights and interests, and combining incentives and punishments.

Article 4: People's governments at the county level or above shall strengthen the leadership of social credit work, and place the establishment of a social credit system within the Citizens' economic and social development plan; draft a plan for the establishment of the social credit system, ensuring expenses for the work, and include social credit work in the target responsibility evaluation system; establish and complete coordination mechanisms for the establishment of the social credit system and plan the advancement of its construction.

Article 5: The provincial government's department for reform and development is the department in charge of the entire province's efforts on the establishment of the social credit system, responsible for drafting management and regulatory policy measures for the establishment of the social credit system, and for guiding, coordinating, overseeing, and managing the entire province's efforts on the establishment of the social credit system.

The departments designated by the people's governments of districted cities (autonomous prefectures) and counties (cities or districts) as in charge of guidance, coordination, and related oversight and management of the establishment of the social credit system in that administrative region are to oversee and guide the aggregation, opening, and use of Social Credit Information.

Relevant departments of people's governments at the county level or above such as for public security, human resources and social security, natural resources, market regulation, the ecology and environment, housing and urban-rural construction, and government affairs, are to complete efforts on the establishment of the social credit system in accordance with their respective duties, jointly advancing the establishment of the social credit system.

Article 6: The provincial people's government shall establish a uniform platform for sharing Social Credit Information, to aggregate and manage Social Credit Information. Relevant departments of people's governments at the county level or above shall aggregate Social Credit Information on the Social Credit Information Sharing Platform.

Industry credit information systems established by units or relevant departments of the provincial people's government, such as for public security, human resources and social security, natural resources, market regulation, the ecology and environment, housing and urban-rural construction, and government affairs, shall be interconnected with the provincial Social Credit Information Sharing Platform with synchronized updates.

The provincial department in charge of social credit work shall strengthen communication and coordination with judicial organs, central units based in Hunan, and so forth, promoting open cooperation between the provincial Social Credit Information Sharing Platform and credit information platforms such as the Basic Financial Credit Information Databases, to satisfy societal demand for its use.

Chapter II: The Establishment of a Social Credit Environment

Article 7: All levels of people's government shall strengthen the establishment of creditworthiness in government affairs, give play to the role of people's governments and their staffs in modeling and demonstrating the establishment of social credit, for creditworthy administration, action, and law enforcement, and increase the transparency of decision-making and the credibility of the government.

All levels of people's government and their relevant departments shall perform on policy pledges made to market entities in accordance with law, and all types of lawfully concluded contracts; and they must not breach contracts on the grounds of an adjustment of administrative divisions, change of government, adjustment of institutions or functions, or replacement of relevant responsible persons Where it is necessary to make changes in policy pledges or contracts and agreements for the national interest or societal public interest, it shall be done in accordance with legally-prescribed authority and procedures, and the market entities suffering losses as a result are to be compensated in accordance with law.

Information such as on administrative organs and their staffs being the subject of judicial judgments, administrative punishments, disciplinary sanctions, or accountability handling for violations of laws, regulations, or contracts in the course of performing their duties, shall be entered into their record of untrustworthiness in government affairs. Responsibility shall be pursued for governments or the persons in charge of departments that cause untrustworthiness in government affairs, and measures such as restricting participation in awards shall be employed against staff members with records of untrustworthiness in government affairs.

Article 8: Market entities shall increase their awareness of rule of law and the spirit of contract, perform contracts in a creditworthy manner, compete fairly, regulate commercial activity, reduce the costs of commercial operations, and maintain positive commercial relationships.

People's governments at the county level or above and their relevant departments shall establish and complete a credit management system for the full life cycle of market entities, strengthening credit management and services in sectors such as production safety, food and drugs, circulation of goods, finance, and taxation; and innovate ex-ante credit regulation, follow state provisions to promote the system of credit pledges in matters such as administrative permitting and make performance on credit pledges a basis for regulation during and after the matter.

Article 9: The societal public, enterprises, public institutions, and social groups shall increase their awareness of creditworthiness, comply with credit self-discipline, and maintain their own good credit.

People's governments at the county level or above and their relevant departments shall strengthen the establishment of social creditworthiness in sectors such as education and research, medical care, social security, intellectual property rights, the environment, and natural resources, promote improvements of social civility, and maintain social harmony and stability.

Article 10: Judicial organs shall strengthen the establishment of judicial creditworthiness, promoting openness in the judiciary, improving mechanisms for oversight and restraint, preserving fairness and justice, and increasing the credibility of the judiciary.

Article 11: All levels of people's government and their relevant departments shall strengthen publicity and education on the culture of creditworthiness, spreading awareness of social credit, and having the establishment of creditworthiness permeate the entire process of establishing citizen morality and the spiritual civilization; publicizing exemplars of creditworthiness and carrying forward the Core Socialist Values.

Schools, families, and society shall carry out education on creditworthiness.

Mass media such as newspapers, radio, television, and the internet shall publicize the deeds of persons that exemplify honesty and trustworthiness, and increase content on honesty and trustworthiness in public interest advertisements.

Chapter III: The Collection and Disclosure of Social Credit Information

Article 12: 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 local supplemental catalogs of Public Credit Information.

Special provisions on the scope of inclusion for local supplemental catalogs of Public Credit Information shall be set up by local regulations.

Where local regulations have special provisions on the scope of inclusion for local supplemental catalogs of Public Credit Information, the provincial or districted city (autonomous prefecture) people's governments' department in charge of social credit work may, in conjunction with relevant departments, draft a local supplemental catalog of Public Credit Information for use in that administrative region on the foundation of the National Basic Catalog of Public Credit Information and lists compiled by the state. Public Credit Information included in the catalogs shall individually specify the specific corresponding conduct, whether it is open, the scope of sharing, the sources and channels for aggregation, the frequency of updates, and other such content.

Comments should be widely solicited from relevant areas, departments, and related market entities, industry associations and chambers of commerce, legal service establishments, experts, scholars, and the societal public; in compiling the local supplemental catalogs of Public Credit Information.

Article 13: Public Credit Information providing units shall promptly, accurately, and completely provide Public Credit Information as required by the information catalogs, and aggregate it to the Public Credit Information Sharing Platform.

Article 14: Credit Service Establishments, industry associations and chambers of commerce, and other enterprises, public institutions, organizations, and so forth, shall follow the principles of truthfulness, objectivity, and completeness in collecting the non-Public Credit Information produced in the course of their own production and provision of services in accordance with law.

Encourage non-Public Credit Information providing units such as credit service establishments, industry associations and chambers of commerce, and other enterprises and public institutions or organizations to provide the non-Public Credit Information they collect to the Social Credit Information sharing platform in accordance with agreements. Non-Public Credit Information providing units shall be responsible for the legality, authenticity, and accuracy of the credit information they provide.

Article 15: Credit subjects are encouraged to provide their own Social Credit Information to the Social Credit Information Sharing Platform, credit service establishments, industry associations and chambers of commerce, and so forth through means such as declarations, voluntary reporting, and social pledges, and be responsible for the legality, authenticity, and accuracy of the Social Credit Information they provide.

Article 16: Public Credit Information is to be disclosed through means such as open display, government affairs sharing, and authorized queries, with the specific means clarified by the Public Credit Information providing units.

Non-Public Credit Information may be disclosed through means such as proactive disclosure by the credit subject or authorized queries.

Article 17: The Provincial people's government's department in charge of Social Credit Information hall draft and publish specifications for the release and inquiries into Social Credit Information; and provide convenient inquiry services to the public through websites, mobile terminals, service portals, and other channels;

Article 18: The following conduct must not be carried out by any units or individuals in the course of collecting, providing, disclosing, or using Social Credit Information:

(1) Fabrication, alteration, or improper deletion of Social Credit Information;

(2) leaking Social Credit Information related to state secrets, commercial secrets, and personal privacy;

(3) Illegally acquiring or selling Social Credit Information;

(4) other acts prohibited by laws or regulations.

Chapter IV: Use of Social Credit information

Article 19: As needed to perform their duties, state organs may make inquiries into Public Credit Information and lawfully purchase credit services and products during work such as administrative permitting, administrative inspections, and social security.

State organs shall lawfully inquire into and use the credit status of market entities participating in public resource trading, government fiscal supports, and other such activities.

The Provincial people's government's department in charge of Social Credit Information shall release a directory of Public Credit Information queries and applications to the public.

Article 20: State organs shall establish a system for Public Credit Information queries in that unit, setting up the authority of the unit's personnel to make inquiries and the procedures for inquiries and establishing inquiry logs that record the name of the of the person making the query, the time and content of the query, the intended use. Inquiry logs shall be stored long-term.

Article 21: After review, state organs may employ the following incentive measures in accordance with relevant state and provincial provisions for credit subjects that comply with legally-prescribed and contractual obligations:

(1) Provide facilitation measures such as priority handling, credit pledges, and permissive handling in carrying out administrative management and the provision of public services;

(2) Where other requirements are equal, make them priority choices for public financing support, commendations, and awards;

(3) Give credit points and credit level promotions in exchanges of public resources;

(4) reasonably decreasing the proportion and frequency of spot inspections in routine regulation;

(5) other incentive measures provided for by laws, regulations, and state or provincial provisions.

Article 22: The provincial people's governments' department in charge of social credit shall draft policies on joint incentives for trustworthiness in conjunction with relevant departments, and promptly send examples of creditworthiness to relevant provincial-level departments and institutions; which are responsible for the implementation of the joint incentive policies in the corresponding system or sector.

Article 23: After review, state organs may employ the following regulatory measures against credit subjects that violate legally-prescribed and contractual obligations, regarding relevant matters within the scope of their authority:

(1) List them as subjects for key review in carrying out administrative permitting:

(2) Give corresponding restrictions in public financing and project support based on the actual circumstances;

(3) restrict the enjoyment of administrative facilitation measures in administrative management;

(4) list them as key subjects for oversight and inspections and strengthen site inspections, in routine oversight and management;

(5) Other regulatory measures provided for by laws, regulations or state provisions.

Article 24: Where based on laws, regulations, or state provisions it is necessary to employ punishment measures for untrustworthiness against credit subjects that have violated legally-prescribed or contractual obligations, the punishment measures for untrustworthiness are to implement list management Lists of punishments for untrustworthiness include the National Basic List of Punishment Measures for Untrustworthiness and local supplemental lists of punishment measures for untrustworthiness.

Special provisions on the scope of inclusion for local supplemental punishment lists shall be set up by local regulations.

Where local regulations have special provisions on punishment measures for untrustworthiness, the provincial or districted city (autonomous prefecture) people's governments' department in charge of social credit work may, in conjunction with relevant departments, compile a local supplemental list of punishment measures for use in that administrative region that are outside those on the National Basic List of Punishment Measures for Untrustworthiness.

Comments should be widely solicited from relevant areas, departments, and related market entities, industry associations and chambers of commerce, legal service establishments, experts, scholars, and the societal public; in compiling the local supplemental lists of punishment measures.

Article 25: Where credit subjects have any of the following situations, the state organs shall enter them in a list of seriously untrustworthy entities in accordance with laws, regulations, and state provisions:

(1) that which seriously harms natural persons' physical health or security in their lives;

(2) that which seriously disrupts the order of fair market competition and normal social order;

(3) Refusing to perform on legally prescribed obligations and seriously impacting the credibility of the judicial or administrative organ;

(4) Refusing to perform State obligations, endangering national defense interests, or destroying national defense facilities;

(5) Other seriously untrustworthy situations provided for in laws, regulations, or state provisions.

Article 26: Before state organs make a decision on designating a credit subject for the list of the seriously untrustworthy entities, they shall notify the credit subject in writing of the reason and basis for making the decision, and of the rights they enjoy; and where the credit subject raises objections, they shall be reviewed with feedback promptly given on the outcome.

State organs entering credit subjects into lists of seriously untrustworthy entities shall issue a decision document indicating the reason and basis, a warning of punishment measures for untrustworthiness, the conditions and procedures for removal from the list, and remedy measures; send it to the credit subject in accordance with law and promptly publish the list of seriously untrustworthy entities to the public through the provincial Social Credit Information sharing platform.

Article 27: Where legal persons and unincorporated organizations are entered onto the list of seriously untrustworthy entities, information on their legal representatives, and responsible persons shall be indicated in the list of seriously untrustworthy entities, and punishments are to be implemented in accordance with laws, regulations, and state provisions.

Article 28: Before state organs implement regulatory or punishment measures, they shall give written notice to the credit subject of the laws, regulations, and relevant state provisions on which the action is based, as well as the content and providing units of Public Credit Information.

Article 29: The punishment measures implemented by relevant government departments shall be suited to the nature, and circumstances of the credit subjects' untrustworthy conduct, and its extent of social harm; and they must not exceed the legally-prescribed requirements, punishment types, or scope.

Credit subjects who are entered into the list of the seriously untrustworthy or have punishment measures taken against them have the right to make statements and defenses.

Article 30: Based on Credit Subjects' credit status, market entities are encouraged to give beneficial facilitation, increased trade opportunities, and other reductions of transaction costs for trustworthy entities in social and economic activities; and to cancel benefits, increase guarantee deposits, and otherwise increase market transaction costs for untrustworthy entities.

Financial institutions are encouraged to provide benefits and facilitation in areas such as credit financing, interest rates, methods for repaying debt to trustworthy entities; and to use risk pricing models to increase interest rates on loans and property insurance rates for untrustworthy entities in accordance with relevant state provisions or limit the provision of services such as loans, sponsorship, underwriting, or insurance to them.

Industry associations and chambers of commerce are encouraged to strengthen the establishment of industry credit, and employ measures for trustworthy entities such as key recommendations and increasing membership levels on the basis of industry discipline conventions and the charters of industry associations and chambers of commerce; measures such warnings, circulating criticism, reducing membership levels, or canceling membership credentials against untrustworthy entities.

Chapter V: Protection of Credit Subjects' Rights and Interests

Article 31: Credit Subjects enjoy the rights to query and reproduce their own Social Credit Information, and have the right to know about the circumstances such as the collection and use of Social Credit Information relating to them, as well as the sources of information contained in their credit reports, and the reasons for any changes.

Article 32: Where credit subjects find that there are errors or omissions in their Social Credit Information, or that there are situations infringing their lawful rights and interests in the course of collecting, disclosing, or using the information, they may submit an objection application to the Social Credit Information providing unit or the deparment in charge of social credit work.

After Social Credit Information providing units or departments in charge of Social Credit work receive an objection application, where it is within the scope they are to address, they shall conduct a review and make a disposition within 3 working days of receiving the objection application; where it is necessary for other units to assist in reviewing information, a review and disposition shall be done within 5 days of receiving the objection application. The applicant shall be notified in writing of the outcome of the handling.

During the period for handling an objection application, the information subject to the objection shall be labeled.

Article 33: Where credit information providing units discover that there are errors or omissions in the Credit Information they provided to the Social Credit Information sharing platform, they shall promptly correct it, and promptly send the corrected information to the Credit Information sharing platform within 3 working days.

Article 34: Where, after credit subjects' Public Credit Information is aggregated, effective legal documents used to determine the credit subjects' credit status such as judgments, rulings, and administrative punishment decision documents are revoked or modified in accordance with law, the original Public Credit Information providing unit shall promptly give written notice to the department in charge of social credit work for the people's government at that level, and the department in charge of social credit work shall make the corresponding corrections within 3 working days of receiving the written notice.

Article 35: The time limits for the Social Credit Information sharing platforms' external provision of services for inquiring into information on credit subjects' untrustworthiness are to be implemented in accordance with relevant state provisions. Where untrustworthy entities are still in the period for punishment when the inquiry period is completed, the inquiry period is to be extended until the punishment period concludes.

Where the inquiry period is completed, the Social Credit Information sharing platform must not provide inquiry services except as otherwise provided by laws and regulations.

Article 36: During the inquiry period, where credit subjects proactively correct their untrustworthy conduct and eliminate the negative impact, they may submit an application for credit restoration with relevant supporting materials to the Social Credit Information providing unit, and the Social Credit Information providing unit shall handle it in accordance with relevant state provisions after they receive it, and notify the applicant of the results of the handling in writing. Where eligible for credit restoration, the Social Credit Information sharing platform is no longer to provide inquiries into the information on untrustworthiness. Where laws, regulations, or state provisions provide that restoration is not to given, follow those provisions.

Chapter VI: Regulation and Development of the Credit Services Industry

Article 37: The departments in charge of social credit work shall strengthen the cultivation, oversight, and management of credit service establishments, draft policy measures on regulating the development of the credit services industry, and promote the healthy and orderly development of the credit services industry.

Article 38: Credit Service Establishments gathering and handling of Social Credit Information, and provision of credit services and products, shall follow the principles of objectivity, fairness, and prudence; lawfully accepting oversight and management.

Credit Service Establishments shall perform obligations on network security, data security, and the protection of personal information in accordance with laws and regulations; and must not endanger national security, public safety, and the public interest; and must not harm the lawful rights and interests of credit Subjects.

Credit service establishments providing related services to credit subjects must not bundle the provision of those services to the collection of social credit information, and must not compel or indirectly compel credit subjects to accept it.

Article 39: Credit service establishments must not undertake business through methods such as false publicity or promising assessment levels.

When credit service establishments conduct credit level assessments, they shall be objective and truthful and must not conduct malicious assessments of credit subjects.

Article 40: Encourage credit service establishments to provide society with credit services and products through credit rating, credit guarantees, credit management consulting and training.

Credit service establishments are encouraged to use big data, blockchain, and other technology to launch credit products in which they have intellectual property rights, and expand the application of the credit services field.

Market entities are encouraged to make inquiries into Social Credit Information and use credit services and products during activities such as market transactions, enterprise management, and financing.

Article 41: The credit service industry associations shall strengthen self-discipline and management, draft industry standards and technical and management specifications, and carry out publicity, training, and the publication of industry information, to increase the capacity and credibility of industry services.

Article 42: Schools of higher learning and secondary vocational schools are encouraged to establish majors in credit management to cultivate credit service professionals.

The development of theoretical research and academic exchanges on credit is encouraged to bring in credit services personnel.

Chapter VII: Legal Responsibility

Article 43: Where laws and administrative regulations related to network security, data security, the protection of personal information, protection of state secrets, and the protection of minors already give punishments for violations of these provisions, follow those provisions; where the civil rights others, such as to privacy, are violated, civil responsibility is to be borne in accordance with law; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Article 44: Where the departments in charge of social credit work or Public Credit Information providing units, and their staffs, commit any of the following acts, an organ with authority is to order corrections and where the circumstances are serious, the directly responsible managers and other directly responsible personnel are to be punished according to law; and where a crime is constituted, criminal responsibility is to be pursued in accordance with law

(1) Fabrication, alteration, or improper deletion of Public Credit Information;

(2) leaking Public Credit Information related to state secrets, commercial secrets, and personal privacy;

(3) Failing to provide, collect, and disclose Public Credit Information as required;

(4) illegally obtaining or selling Social Credit Information;

(5) Failure to perform duties such as handling objections to information or credit restoration in accordance with law;

(6) Illegally carrying out incentive, regulatory, or punishment measures;

(7) Other abuses of authority, twisting the law for personal gain, or dereliction of duty.

Article 45: Where non-Public Credit Information providing units and their staffs have any of the following conduct, the departments in charge of social credit work of people's governments at the county level or above, or the departments designated by laws and regulations, are to order that corrections be made in a set period of time, give a fine of between 50,000- 300,000 RMB to the unit, and fine the directly responsible managers and other directly responsible personnel between 10,000 and 100,000 RMB; where there are unlawful gains, they are to be confiscated, and where a crime is constituted, criminal responsibility is pursued in accordance with law.

(1) Fabrication, alteration, or improper deletion of non-Public Credit Information;

(2) leaking non-Public Credit Information related to state secrets, commercial secrets, and personal privacy;

(3) Illegally acquiring or selling Social Credit Information;

(4) Undertaking business through methods such as false publicity or promising assessment levels;

(5) Conducting malicious rating of credit subjects;

(6) other conduct violating the lawful rights and interests of credit subjects that is prohibited by laws or regulations.

Chapter VIII: Supplemental Provisions

Article 46: These Regulations take effect on September 1, 2022.