Notice on Strengthening Oversight and Management of Untrustworthy Entities

Promulgation Date: 2018-7-24
Title: The General office of the National Development and Reform Commission and General Office of the People's Bank of China Notice on Strengthening Supervision and Management of Untrustworthy Entities
Document Number:发改办财金〔2018〕893号
Expiration date: 
Promulgating Entities: General Office of the National Development and Reform Commission, the General Office of the People's Bank of China
Source of text: http://www.ndrc.gov.cn/zcfb/zcfbtz/201808/t20180802_8946html

To each provincial, autonomous region, or directly governed municipality and Xinjiang Production and Construction Corps unit leading the establishment of the social credit system:

The following Notice on efforts to strengthen credit oversight and management for untrustworthy entities is hereby given on the basis of the "State Council Notice on the Issue of the Planning Outline for the Establishment of a Social Credit System (2014-2020)" (Guofa (2014) No. 21), the "State Council Guiding Opinion on Establishing and Improving a system of Joint Rewards for Trustworthiness and Joint Disciplinary Action Against Untrustworthiness to Accelerate the Establishment of Societal Creditworthiness" (Guoafa (2016) No.33), and the "National Development and Reform Commission and People's Bank of China Guiding Opinion on Strengthening and Regulating Efforts on the Management of Joint Rewards for the Trustworthy and Joint Disciplinary Action for Untrustworthy Blacklist Targets" (FaGaiCaiJinGui(2017) No.1798) and other such documents.

I. Fully recognize the important significance strengthening supervision of untrustworthy entities

The Party Central Committee and the State Council place great importance on the establishment of the social credit system. General Secretary Xi Jinping has requested the building of an overall credit punishment landscape in which 'those untrustworthy in one area meet obstacles everywhere", and untrustworthiness is challenged at every step; and for prominent issues of the lack of creditworthiness, a credit reporting system with full societal coverage should be established quickly, and mechanisms should be improved for commendations for legal compliance and punishments for the untrustworthy, making it so that people don't dare to be untrustworthy and cannot be untrustworthy. Premier Li Keqiang has emphasized accelerating the establishment of joint reward and disciplinary action mechanisms, 'giving the trustworthy a road full of green lights, and the untrustworthy face restrictions at every turn."

Today, untrustworthiness is a fairly widespread phenomenon in some areas and some fields, and the roots of this high frequency have not been controlled, seriously impacting the healthy and sustainable development of society and the economy. Strengthening credit oversight and supervision of untrustworthiness is the key to implementation of the major decisions and deployments of the Party Central Committee and State Council on accelerating the building of a new for form of market oversight and supervision mechanism with credit as its core. One aspect is that untrustworthy entities should be spurred to more quickly correct untrustworthy conduct, reduce negative impacts, and restore their own credit; another aspect is increasing the costs of untrustworthiness, leading all types of entity to be lawful and creditworthy in doing business and to preserve a positive credit record. Through a series of systemic arrangements accelerating the resolution of the social impact from existing untrustworthy conduct and establishing long-term and effective mechanisms for preventing and reducing occurrences of untrustworthy behavior, address both the symptoms and root causes, fully strengthen market oversight capacity, advance all kinds of entities' awareness of creditworthiness, and raise the entire society's creditworthiness level.

'Untrustworthy entity' as used in this Notice includes entities that have been entered onto each blacklist or key scrutiny list on the national credit information sharing platform by any region or department (unit) in accordance with laws, regulations, or rules, and relevant normative documents, standards and procedures.

II. Supervise and Urge Untrustworthy Entities Making of Corrections Within a Set Period of Time

Establish systems for correcting untrustworthy behavior in a set period of time. For untrustworthy entities that can correct untrustworthy conduct or remove negative impact by performing related obligations, the designating departments (units) should clarify the requirements and time period for corrections, an in principle the period for corrections and information on the untrustwothiness should be publicly announced, but where it is not publicly announced for special reasons, it should be shared through the national credit information sharing platform. Departments (units) making designations may combine actual circumstances in an appropriate manner to supervise and prompt untrustworthy entities to make corrections within a specified period. After the corrections have been made, the untrustworthy entity may request that the designating department (unit) confirm this; and where the corrections have not been fully made, the designating department (unit) should initiate procedures for having reminder or warning talks.

III. Standardize reminder and warning talkings-to for the untrustworthy.

Establish systems for reminder and warning talkings-to for the untrustworthy. In accordance with the principle of 'those making designations being the ones to give talkings-to', the relevant departments will conduct one reminder talking-to with the principle responsible person of entities on key scrutiny lists that do not make corrections within the time period, and conduct one warning talking-to with the principle responsible person of entities on blacklists that do not make corrections within the time period, and the outlines for the talkings-to are to be drafted by the provincial level regulatory departments. Record from the talkings-to (including situations such as refusals to meet or cooperate) are to be recorded in the untrustworthy entities' credit records, and entered into the national credit information sharing platform.

IV. Promote orderly public release of information on untrustworthiness

Establish and complete systems for public announcement of information on untrustworthiness. Fully use the 'Credit China' website, the enterprise credit information announcement system, all levels of government and their departments' web portals, and other such channels, to publicly disclose all kinds of information on entities' untrustworthiness in accordance with laws and regulations. Information on untrustworthiness that should be disclosed includes negative records such as of administrative punishments, law enforcement investigations, blacklists, and judicial judgments, and compulsory enforcement, key scrutiny lists may be selectively disclosed. Of these information on administrative punishments should be disclosed through government websites within 7 days of the administrative decision being made, and promptly aggregated on the "Credit China" website. Publicly disclosed information on untrustworthiness should clarify the period for disclosure. Necessary technical processing should be carried out before the release of information involving enterprises' commercial secrets and personal privacy.

V. Strengthen broad sharing of information on untrustworthiness

Improve systems for sharing information on untrusworthiness. On the foundation of the unified social credit codes, employ the national credit information sharing platform and all levels of local credit information sharing platforms to aggregate all information on untrustworthiness for each region, each department, and each field, recording it under the common entity name, and establishing a complete entity credit archive. All levels of government and local Public Credit Information centers should fully share the aggregated and completed credit information with each level of government department and units participating in enforcement of joint disciplinary action, to support coordinated supervision and management across regions and departments. Strengthen protections of personal privacy and information security, safeguarding the lawful rights and interests of information subjects

VI. Strengthen directed transfers of information on untrustworthiness

Complete systems for directed transferring of information on untrusworthiness. Each provincial level unit for leading the establishment of the credit system is to put information related to untrustworthy entities, For untrustworthy entity information that cannot be disclosed in accordance with law, it may be handled through reporting to the parties' units or other regulator departments in accordance with law and discipline.

VII. Comprehensively put in place joint disciplinary action measures against the untrustworthy

Improve systems for joint disciplinary action for untrusworthiness. Each provincial level unit leading the establishment of the social credit system is to refer to the memorandums of understanding signed by relevant national departments on joint disciplinary action against untrustworthiness, and draft a list of regional joint disciplinary measures for untrustworthiness, urging relevant departments to include inquiries into credit information and restrictions on untrustworthy entities in their administrative management and public service workflows. All levels of national and local public credit information centers should employ credit information sharing platforms to carry out the joint disciplinary action systems, automate feedback for every incident, and promptly aggregate and report cases of joint disciplinary action. While earnestly putting in place each administrative punishment measures, information on untrustworthiness should simultaneously be fully shared in accordance with laws and regulations with the industry associations and chambers of commerce, credit service establishments, financial institutions, news media, and so forth, promoting the implementation of market, administrative, and social punishments, and accelerating the establishment of an overall credit environment where 'untrustworthiness anywhere brings restrictions everywhere".

VIII. Pursue the responsibility of the responsible parties for untrustworthy units

Establish systems for tracking the responsibility of the responsible parties at untrustworthy units. Where legal persons and unincorporated organizations have been listed in blacklists and key scrutiny lists, the legal representatives (or principle responsible person) and related personnel with responsibility should be held accountable, with the information on the untrustworthiness of the legal person or unincorporated organization being an important basis for assessing their legal representative (or principle responsible person) and related personnel with responsibility's credit status, included in their personal credit archive, and shared through the national credit information sharing platform. While carrying out joint disciplinary action against untrustworthy units, establish mechanisms for joint disciplinary action against their legal representatives (or principle responsible person) and related personnel with responsibility.

IX. Lead untrustworthy entities making public credit promises

Establish and complete systems for credit pledges. Encourage and guide untrustworthy entities to make written credit promises in accordance with provided forms. The content of the promises includes the specific requirements of lawfully running a business, willingness to accept public oversight, willingness to accept joint disciplinary action for breaking the promises. Credit promises are to be disclosed through the "Credit China" website, entered into the relevant entities' credit records, and to be an important condition in credit restoration.

X. Widely carry out special training on credit restoration

Establish a system of credit restoration training for untrustworthy persons and the legal representatives of untrustworthy units (principle responsible persons). Units leading the establishment of the social credit system for local governments at the county level or above should organize and carry out credit restoration training for the principle responsible person of entities on blacklists or key scrutiny lists within their jurisdictional region. The content of the training is to include lectures on the regulations and policies for the establishment of the national social credit system, joint disciplinary actions against untrustworthiness, and their impact on all kinds of entities, methods and procedures for credit restoration, and so forth, and the training must not be less than three class hours. Attendance at credit restoration training is to be recorded in the untrustworthy entities' credit records, and entered into the national credit information sharing platform. All levels of unit leading the establishment of the social credit system and departments (units) designating untrustworthy entities jointly hold training, and may also bring in industry associations and chambers of commerce, credit service establishments, and other social forces to organize training.

XI. Establish systems for providing credit reports on untrustworthy entities

Establish systems for proactive reporting on the credit status of untrustworthy entities. After untrustworthy entities have been entered into blacklists or key scrutiny lists, they should proactively submit credit reports when applying to be removed from the blacklist or key scrutiny list. When the departments (units) making designations receive applications to remove untrustworthy entities from blacklists or key scrutiny lists, their credit report should be an important reference. Credit reports are to be issued by qualified credit service establishments and shared on the national credit information sharing platform.

XII. Encourage untrustworthy entities to carry out consultation on credit management

Establish systems for credit management counseling and information. Encourage entities on blacklists or key scrutiny lists to retain qualified credit service establishments to carry out credit management counseling and consulting. Credit service establishments counsel relevant entities in establishing lawful and creditworthy business ideas, improving internal credit management systems and management systems, establishing long-term effective mechanisms for preserving their image of creditworthiness and preventing the occurrence of untrustworthy conduct.

XIII. Actively and appropriately carry out credit restoration

Establish systems for credit restoration. Where entities on blacklists and key scrutiny lists that make corrections and eliminate negative impact within the set period of time, they are no longer to be targets of joint disciplinary action. Establish mechanisms for social encouragement and social care that are conducive to self-correction and actively turning over a new leaf, support entities on blacklists or key scrutiny lists in restoring their credit through means such as making public credit promises, participating in special training on credit restoration, submitting credit reports, and participating in public service.

XIV. Truly strengthen industry supervision and management

Establish systems for industry credit oversight and management. Give play the role of industry oversight departments, and explore bringing in third-party organizations to coordinate and participate in industry credit oversight, establish and complete industry credit records, carry out efforts on industry credit announcements, risk alerts, early warning and monitoring, credit management training, and so forth, building the social credit system in the area of industry.

XV. Give play to self-disciplinary oversight and management role of industry associations and chambers of commerce

Establish and complete systems for creditworthiness self-discipline by industry associations and chambers of commerce Give play to the organizational role of industry associations and chambers of commerce, establish credit records for member units, draft lists of punitive measures targeting the untrustworthy conduct of members, and conduct public announcements and sharing of information on member units untrustworthiness. Strengthen the establishment of industry associations and chambers of commerce's own creditworthiness, and making assessments of industry associations and chambers of commerce's credit.

XVI. Introduce coordinated supervision and management by credit service establishments

Establish systems for credit service establishments coordination of oversight and management. Give play to the professional role of credit service establishments, bringing in credit service establishments that have the capacity to participate in coordination and management, explore carrying out the establishment of credit records, big data analysis, following up monitoring for untrustworthiness, and other such efforts. When carrying out information sharing with credit service establishments, and third-party assessments, establish credit archives on the relevant bodies.

XVII: Encourage innovation in credit management of untrustworthy entities.

Establish systems for encouraging innovation in credit management. Encourage using credit commitments to aid in administrative approvals, using information announcements to aid in administrative oversight, coordination with filing and registration to aid in information collection, and thorough incorporation in contracts and agreements to promote trustworthy performance, so as to form information supervision and management systems in which credit commitments, information announcements, coordinated registration, and contract supervision are core operational mechanisms, supporting and promoting the national reform of "streamlining administration and delegating powers to lower levels."

XVIII: Strengthen organization and guidance of credit management efforts

All levels of Public Credit Information center should truly do a good job of support work in aggregating information aggregation, sharing, announcements, and joint disciplinary action. All levels of Public Credit Information center should truly do a good job of support work in aggregating information aggregation, sharing, announcements, and joint disciplinary action.

IXX. Strengthen performance evaluations to ensure that tasks are implemented

Organize the national Public Credit Information center to break down national level blacklists and key scrutiny lists for each area, organizing third-party establishments to carry out assessments of the state of efforts in each area such as on training, talkings-to, punishment, counseling, credit reporting, and credit restoration. Third-party assessment conclusions are to be an important part of the content of the evaluation of each province's (region's, city's) establishment of a social credit system and assessments of city credit status monitoring. Each region should gradually break down work tasks, ensuring that they reach down to the individual.

XX.Strengthen publicity to create a positive social environment

Empasize discovering classic examples of untrustworthy entities accepting credit oversight and management and restoring their own credit status, as well as local experiences and methods, make full use of the "Credit China" website, "China Credit" Magazine, and other social media of all types, to broadly carry out viewpoint exchanges and publicity reporting. When appropriate, organize third-party establishments to select example cases, further forming a positive environment in which entities pay attention to credit records, government departments strengthen credit oversight and management, and all of society jointly cares about the establishment of the social credit system.

This document is to take effect on the date of publication, and remain in effect through December 31, 2020.

General Office of the National Development and Reform Commission

General Office of the People's Bank of China

2018/7/24