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Clarity needed on new ratings system for foreign business

  • Overseas firms and Chinese authorities must work together on what is a game-changer to create a level playing field for all businesses

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A clerk counting Chinese 100 yuan banknotes at a branch of a foreign bank in Beijing, China. Photo: Reuters

Discussions on China’s controversial social credit system have so far focused on individuals. But, as a new system will be rolled out next year, foreign companies are worried as they will also be included.

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Adding to their concerns is that the Ministry of Commerce is set to publish a black list of “unreliable foreign entities” deemed to have damaged Chinese interests. Businesses are confused about how this list will be used within the new system.

There needs to be clarity on this matter which only regulators can provide.

In a new study, the European Union Chamber of Commerce in China has raised some legitimate concerns which mainland regulators will do well to address to help foreign companies navigate the new complex system.

A Chinese paramilitary policeman on duty in front of the European Union flag in Beijing, China. Photo: AP
A Chinese paramilitary policeman on duty in front of the European Union flag in Beijing, China. Photo: AP
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In fairness, though, the chamber also welcomes its clearly spelt-out regulations and criteria in how companies will be rated.

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