China's Corporate Social Credit SystemMultimedia
- Title: China's Corporate Social Credit System
- Date: March 16th, 2020
The Corporate Social Credit System (SCS) will be the most comprehensive system created by any government to regulate a marketplace and will have implications on all companies doing business in or with China. It is no understatement to say that it will fundamentally change the regulatory environment here.
Set to take full effect at the end of 2020, the Corporate SCS will utilize Big Data, compiling, and centralizing data from government authorities at all levels, nationwide, to produce a real-time credit, or trustworthiness, rating for each company. These ratings will be used to ‘reward’ or ‘punish’ companies.
This policy will have an enormous impact on companies whose scoring metrics are low, but it may also help those with good scores access certain advantages. To ensure that your company is not negatively impacted by the introduction of the Corporate SCS, it is imperative to prepare for its implementation.
To address this, Marco Förster, International Business Advisory of Dezan Shira & Associates, gave a presentation that details the acute disruption that companies in China will face, and what they must do to ensure compliance as well as how your companies in China can prepare for this new policy in 2020.
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