Opinions on Advancing High-Quality Development in the Establishment of the Social Credit System for Promoting the Formation of a New Development Structure

【Issuing Body】General Office of the Central Committee of the Communist Party of China, General Office of the State Council
[Source]http://www.gov.cn/zhengce/2022-03/29/content_5682283.htm

Improving the Social Credit System is an important safeguard for ensuring effective connections between supply and demand, it is a solid foundation for optimizing the allocation of resources, an important component of a positive business environment, and has great significance for promoting smooth and efficient economic circulation and for building a new development structure. The following Opinions are put forward so as to advance the high-quality development of the social credit system and to promote the formation of a new developmental structure.

I. General Requirements

(1) Guiding Thought. With Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as guidance, thoroughly implement the spirit of the Party's 19th Congress and its plenary sessions, adhere to the systematic concept, plan development and security, and cultivate and practice the Core Socialist Values; firmly advance the idea of credit, the credit system, credit tactics, and their thorough integration into every step of the national economic system; give further play to the important role of credit in increasing the efficiency of resource allocation, reducing systemic transaction costs, and preventing and resolving risks; providing safeguards in the promotion of the new development structure.

(2) Work Requirements. Based on the overall situation of economic and social development, make overall arrangements and highlight key points, to orderly promote the advancement of the establishment of credit in each region, industry, and sector. Actively explore and innovate, using the concepts and methods of credit to resolve challenging, blocking, or painful issues that restrict economic and social operations. Push the establishment of the social credit system fully onto the path of rule of law, regulating and improving credit measures in each sector and stage, truly protecting the lawful rights and interests of all types of entities. Fully mobilize the proactiveness and creativity of all entities, giving play to the active role of the credit reporting market, giving more play to the roles of government in organization and coordination, demonstration and guidance, and oversight and management, to form a high-quality joint force for developing the establishment of the social credit system.

II. Clear domestic circulation through sound credit mechanisms.

(3) Strengthen the establishment of creditworthiness in scientific research and the protection of intellectual property rights. Fully carry out the credit pledge system for scientific research, strengthen audits on creditworthiness for the full course of scientific research activities, and increase awareness of creditworthiness among scientific research bodies and personnel. Investigate and address conduct that is contrary to the requirements of creditworthiness in scientific research such as plagiarism, stealing, fabrication, and distortion, combatting the black market for theses. Complete operations systems for protecting intellectual property rights, encourage the establishment of self-discipline mechanisms for the protection of intellectual property rights, and explore the development of credit assessments in the intellectual property rights sector. Complete systems of punitive damages for violations of intellectual property rights, increasing the force of punishments for illegal untrustworthy conduct such as preemptive trademark registration and irregular patent applications, to purify the market for intellectual property exchanges.

(4) Advance the establishment of credit for quality and brands. Thoroughly carry out actions to increase quality, intensifying requirements of creditworthiness in areas such as measurement, standards, certification, accreditation, inspections, and testing; expanding the supply of high-quality goods and services in the domestic market, and increasing the level of security and controllability in the production and supply chains. Carry out actions to create Chinese brands, promote enterprises' implementation of legal compliance and creditworthiness requirements in every step of their production and business, strengthen protection of China's established brands and geographic labeling, cultivating a batch of benchmark enterprises that operate with creditworthiness and keep promises.

(5) Improve credit systems in stages such as circulation and distribution. Correctly assess credit statuses, increase the efficiency in the distribution and use of resources. Accelerate the establishment of a system for tracking important products both online and offline. Complete reputation mechanisms for market entities and increase the level of contract performance by enterprises. Implement a credit pledge system for tax declarations, increasing awareness of creditworthiness among taxpayers. Lawfully combat fraud to obtain minimum living allowance funds, social security benefits, subsidized housing, and so forth. Establish a list system for seriously untrustworthy entities in the social insurance sector. Promote information disclosure by charitable organizations, establish a list of abnormal activities by charitable organizations to prevent and control fraud to get donations, and increase the credibility of charitable organizations. Lawfully punish untrustworthy conduct such as being in arrears on salary payments to migrant workers, to preserve the lawful rights and interests of migrant workers.

(6) Build a creditworthy environment for spending and investment. Encourage the exploration and use of credit tactics to release potential spending, carrying out the "Credit +" project in sectors such as medicine, eldercare, domestic services, travel, and shopping. Lawfully combat conduct such as the production and sale of fakes, illegal advertising, and false advertising; strengthen regulation of advance payment spending, conduct joint disciplinary action in accordance with law against untrustworthiness that harms consumer rights and interests; and lawfully carry out market prohibitions against who have been repeatedly warned but don't stop and don't change after punishment. Strengthen the establishment of a government that is under law and creditworthy, fulfilling agreements in accordance with law and creditworthiness in activities such as private-public cooperation and encouraging investment, to increase investor confidence. Establish and complete systems for pursuing accountability for government untrustworthiness, improving long-term effective mechanisms for controlling owed debts and other such conduct. Spread the notice and pledge system for approvals related to enterprises. Strengthen the establishment of judicial credibility, increase the force in pushing persons subject to enforcement to actively fulfill their obligations, and lawfully punish false litigation.

(7) Improve credit systems for ecological and environmental protection. Fully implement credit appraisals in sectors such as environmental protection and water and soil preservation, strengthening the sharing and use of credit appraisal results. Deepen reforms to the system for disclosure of environmental information in accordance with law, promoting the lawful disclosure of environmental information by enterprises and public institutions. Focus on the requirements of carbon neutrality in peak carbon dioxide emissions, improve the national carbon emission trading market system, and strengthen credit regulation in stages such as registration, trading, settlement, and verification. Give play to the roles of government regulation and industry self-regulation, establish and complete effective mechanisms for managing and restricting conduct in violation of laws and regulations such as misrepresentations by discharging units or intermediary institutions making false reports.

(8) Strengthen the establishment of credit for all entities. Focusing on all fields and phases in the market economy operations, lawfully strengthen the establishment of credit for all entities participating in market activities, such as enterprises, sole proprietorships, social organizations, state organs, public institutions, and natural persons. Continuously improve credit records, strengthen credit restraints, establish and complete long-term and effective mechanisms in which none dare to be untrustworthy, they cannot be untrustworthy, and they do not want to be untrustworthy, making honesty and trustworthiness the value orientation for market operations and the conscious pursuit of all entities.

III. Support the mutual promotion of domestic and foreign circulation with an environment of good credit.

(9) Optimize credit management for importing and exporting. Guide foreign-trade enterprises to delve into the international market, strengthening the establishment of brands and quality. Advance the "Authorized Economic Operator" (AEO) international mutual recognition and cooperation at a high level; advance the high-quality establishment of the customs credit system; Promote the implementation of differentiated regulatory measures so that enterprises with high accreditation levels "feel they have gotten something"; establish systems for credit restoration and for lists of seriously untrustworthy entities in the import/export customs sector, creating a business environment of honesty and trustworthiness for imports and exports. Use foreign trade policy tools such as export tax rebates and export credit insurance to appropriately relax requirements for underwriting and claims.

(10) Strengthen the establishment of credit for two-way international investment and foreign cooperation. Implement the Foreign Investment Law and its implementation regulations, completing the management system of citizen benefits plus a negative list prior to allowing foreign investments, protect the lawful rights and interests of foreign investors, increase the force of international cooperation in the protection of intellectual property, and preserve and increase the appeal to foreign investors. Strengthen the establishment of credit in sectors such as foreign investment, foreign contracting projects, and foreign aid; strengthening the collection, sharing, and use of credit information; popularizing the use of electronic licenses, improving incentives for trustworthiness and punishments for untrustworthiness, to further regulate order in the marketplace. Improve the system for filing and approving overseas investment, optimize reviews of veracity and compliance, improve systems for reporting foreign investment, improve management of filing and reporting for foreign contracting projects and the opening and management of specified projects, including conduct that violates laws and regulations in credit records, strengthening the entire chain of regulation, ex ante, ex post, and throughout.

(11) Actively participate in international governance of the credit sector. Actively fulfill multilateral and bilateral trade agreements reached with other countries, advance revisions of laws and regulations as needed to expand openness and as needed for our country. Steadily expand the systematic openness of rules, regulations, management, and standards in the credit sector, provide high-quality services in joint building of BRI, and contribute Chinese wisdom and provide Chinese plans to promote the building of a more just and reasonable system of international governance.

IV. Promote financial services for the real economy on a solid foundation of credit.

(12) Innovate credit finance services and products. Develop inclusive finance, expand the scale of credit lending, resolving the financial challenges of small, medium, and micro enterprises and sole proprietorships. Strengthen the sharing and integration of Public Credit Information with financial information, popularize a "credit-facilitated borrowing" model based on information sharing and the exploitation of big data, and deepen the construction of the "interaction between banks" and "cooperation between business and banks" mechanisms. Encourage banks to innovate credit lending products in special fields such as the service and manufacturing industries, strategic emerging industries, the "three rural issues" [agriculture, rural areas, and farmers], environmental protection, and foreign trade; developing pledge financing for billing, warehouse receipts, insurance policies, bailment, accounts receivable financing, and intellectual property rights. Regulate the development of consumer credit lending.

(13) Strengthen the establishment of creditworthiness in the capital markets. Further consolidate the foundation of law and creditworthiness in capital markets, establishing creditworthiness archives for capital markets, and enhancing the awareness of credit and spirit of contract. Tighten entities' responsibility for information disclosures, increasing market transparency. Establish a credit pledge system for administrative permits in capital markets to increase efficiency in handling. Urge intermediary service bodies to diligently complete their duties and increase the professional integrity of employees. Strictly enforce the mandatory delisting system, establishing a beneficial cyclic mechanism for the survival of the fittest listed companies. Strengthen protections of investor rights, creating a financial ecology and environment of honesty and trustworthiness.

(14) Strengthen credit restraints for market entities. Give full play to the role of credit in recognizing, monitoring, managing, and addressing credit risks; establish and complete mechanisms for 'early discovery, early warning, and early handling" to prevent and resolve risks. Support financial institutions, credit reporting and rating establishments, and so forth in using big data and other technology to strengthen tracking, monitoring, and early warnings, completing marketized mechanisms for risk distribution, mitigation, and compensation. Persist in "strict regulation with zero tolerance"; strictly, quickly, and severely investigating and addressing major cases of violations such as fraudulent issuances, false statements, market manipulation, and insider trading; increasing the force of criminal prosecutions of misappropriation and embezzlement of fund assets. Complete mechanisms for the disposition of debt defaults, strictly punishing acts of debt evasion in accordance with law. Strengthen punishments for untrustworthiness in the online lending field. Improve mechanisms for market exits, so that insolvent enterprises that cannot repay debts are allowed to declare bankruptcy and restructure, or liquidate; explore the establishment of mandatory market exits for enterprises.

V. Increase the entire society's level of creditworthiness through effective credit regulation and credit services

(15) Complete credit infrastructure. Plan and advance the establishment of Public Credit Information systems. Accelerate the pace of credit information sharing, build a credit information network that covers all credit entities, all types of credit information, and all regions of the nation, establish credit archives with uniform standards that are authoritative and accurate. Give full play to the information disclosure roles of the 'Credit China' website, the National Enterprise Credit Information Publicity System, the public institution registration management website, and the social organization credit information publicity platform. Further improve the Basic Financial Credit Information Databases, increasing data coverage and quality.

(16) Innovate in credit regulation. Accelerate and complete mechanisms for new forms of credit-based regulation. Establish and complete systems for credit pledges. Fully establish systems for the comprehensive appraisal of enterprises' credit status, optimize the allocation of regulatory resources by being oriented toward credit risks, advancing graded and categorical credit regulation in key sectors such as food and drug safety, construction projects, bidding and tendering, production safety, fire safety, medicine and health, environmental protection, pricing, statistics, and use of government funds; to increase precision and efficacy in regulation. Thoroughly develop special governance actions, striving to resolve issues of a lack of creditworthiness or untrustworthiness that the public feels strongly about.

(17) Cultivate professional credit service establishments. Gradually establish a credit service system in which public credit service establishments and market credit service establishments supplement each other, and in which basic and augmented credit services complement each other. So long as security is preserved, all relevant departments and public credit service establishments are to make data open in accordance with law and support the development of market credit service establishments such as for credit reporting, rating, guarantees, factoring, and credit management consultation. Accelerate the pace of reforms to marketize the credit reporting industry, cultivating credit rating establishments that can compete internationally. Strengthen regulation of the credit services market, promote orderly competition, and increase the level of creditworthiness in the industry.

(18) Strengthen the establishment of a culture of creditworthiness. Forcefully carry forward the Core Socialist Values, promoting the formation of a positive atmosphere that admires and practices creditworthiness. Guide industry associations and chambers of commerce to strengthen self-discipline on creditworthiness, support news media in carrying out publicity and public opinion oversight on creditworthiness, and encourage the public to actively participate in activities on the establishment of creditworthiness. Deepen the establishment of internet creditworthiness. Advance the establishment of personal creditworthiness in accordance with law, strive to develop education on creditworthiness for groups such as youths and business owners, as well as the staff of professional and intermediary service bodies, and parties to marriage registrations; and strengthen employment commitment management aimed at medical and education students. Strengthen the academic establishment and cultivation of talent for credit.

VI: Strengthen Organization and Implementation

(19) Strengthen Party Leadership. Adhere to and strengthen the Party's leadership of efforts to establish the social credit system. In accordance with the general requirements of overall planning by the Central Committee, overall responsibility of provinces, and implementation by cities and counties, establish and complete mechanisms for planning and coordination and include the establishment of the social credit system in comprehensive performance evaluation of higher-quality development, ensuring that each item is properly implemented. The National Development and Reform Commission and the People's Bank of China should strengthen planning and coordination, and each relevant department and unit should truly fulfil their duties, forming a joint workforce.

(20) Strengthen System Safeguards. Accelerate and promote the presentation of comprehensive and foundational laws on social credit, and revise administrative regulations such as the Provisional Regulations on the Display of Enterprise Information. Encourage all areas to draft local regulations on social credit within the scope of their legislative authority and in consideration of actual conditions. Establish and complete systems such as for credit pledges, credit appraisal, credit regulation by level and type, credit incentives and punishments, and credit restoration. Improve the system of credit standards.

(21) Persist in stability, prudence, and moderation. Compile the Uniform National Basic Directory of Public Credit Information and the List of Basic Punishment Measures for Untrustworthiness, correctly defining the scope of recording, aggregation, sharing, and disclosure of credit information and the scope of punishment measures applied for trustworthiness. Adopt punishment measures with the appropriate degree of severity based on the nature and seriousness of the untrustworthy conduct, to prevent excessive punishment.

(22) Advance pilot demonstrations. Coordinate efforts on the construction of demonstration areas for the establishment of social credit systems, with an emphasis on carrying out practical exploration in areas such as new forms of credit-based regulatory mechanisms, the use of credit to promote financial services for the real economy, and improving the legal system for credit. All regions and relevant departments are encouraged to implement initial trials, and then promptly summarize and spread example practices and successful experiences.

(23) Strengthen Security Protections. Strictly implement responsibility for the protection of information security, regulate the authority and procedures for inquiries into and use of credit information, and strengthen the security management of information infrastructure in the credit field. Protect state secrets and commercial secrets in accordance with law. Implement laws and regulations such as the Personal Information Protection Law, to preserve the lawful rights and interests of personal information. Regulate the flow of credit information across borders in accordance with law to prevent harm to national security from the flow of information abroad.