New credit-based regulatory mechanism urged

The State Council recently issued a circular to press for the establishment of a credit-based regulatory mechanism, to take effect as soon as possible.

An improved credit commitment system should take shape promptly, the circular read. Qualified applicants who have submitted related materials should be handled in a timely manner. More administrative items that apply to the credit commitment system should be rapidly clarified.

Concerned departments should also delve into education on credit for proprietors before they start business.

Credit reports should be applied to a wide spectrum of administrative engagements, including government procurements, bidding, administrative approvals, market access and auditing, so credit reports can come into full play.

With regard to regulatory work during the process, departments should establish a credit record system for market entities nationwide based on lists of rights and liabilities, with emphasis on the filing of discredit records to make related information traceable, the circular said.

Market entities are encouraged to register their credit information — including licenses, credentials, contracts and public welfare — on creditchina.gov.cn or through other channels.

A national credit information sharing platform should work in concert with relevant departments, integrate credit information in accordance with corresponding laws and regulations, engage in comprehensive evaluation for public credit and disclose results to the public according to related stipulations.

In addition, regulatory work on social credit calls for classification and grading for the purpose of favorable operations.

Credit supervision following the process requires improvements in joint disciplinary action, and punishments should include restrictions on stock issuing, bidding, and tax preference.

According to the circular, discredited market entities should engage in rectification and reform within the time given.

Industries related to safety of people’s life and property require stricter insight in market access, and harsher punishment against discredited operators.

A credit recovery system will also be built for market entities that have corrected their behavior and eliminated ill effects within time limits.