China pushing ahead with controversial corporate social credit rating system for 33 million firms
- National Reform and Development Commission has completed its initial assessments, which will be used to label firms excellent, good, fair or poor
- Foreign firms fear they will be targeted in the event of a trade dispute or to give domestic firms a commercial advantage
China is moving forward rapidly its plans for a controversial social credit rating system that will include 33 million companies, raising fears of reprisals among foreign firms as Beijing seeks to extend its control over the business environment in the country.
The social credit rating will include court rulings, tax records, environmental protection issues, government licensing, product quality, work safety and administrative punishments by market regulators.
Advocates argue that it will help create better corporate citizens, but critics say that it will give greater latitude to local officials to target certain firms.
In a circular released on Monday, the NDRC said it had completed its initial assessment of the credit results, which will now be sent back to local authorities for further checks and updates.