China boosts efforts to deter bad faith

Greater efforts should be made to improve China’s bad faith deterrent system and build a long-term mechanism for promoting honesty, according to a circular released by the General Office of the State Council on Dec 18.

The move is aimed at facilitating implementation of the regulation on optimizing the business environment, and further applying the rule of law and uniformity into the country's social credit system.

The circular required strict compliance with laws and regulations when documenting acts of bad faith, identifying individuals and businesses with high levels of dishonesty, and punishing their practices.

Clear criteria should be set for defining the scope of public credit information and the list of those who are severely violating good faith requirements, the circular said.

To safeguard the legitimate rights and interests of all parties involved, punishment should vary according to the gravity and impact of bad-faith acts, among other factors, to avoid improper use or misuse thereof, it said.

The circular stressed aligning China’s social credit system with international standards based on its own realities, and called for prudence in fields where no uniform understanding has been fostered.

A sound credit repair application mechanism should be in place for eligible applicants who are able to rectify their bad-faith acts and eliminate related adverse impacts as required.

To enhance information security and privacy protection, access to and use of credit information should be regulated, and stringent measures are needed for infractions such as illegally leaking and stealing such data, the circular added.