Chinese social rating system spread to business

The rating system for people has already left about 13 million people without tickets for trains and planes. We also prepared a rating for the business, it contains 300 different requirements. It is possible that some of them will be political.

The Chinese social rating system for citizens has been introduced since 2014, and in the near future, companies will also join it. Wired UK reports that there are now about 400 thousand different enterprises in the system, and soon it will be distributed to all firms - both Chinese and foreign. Experts do not exclude that joint ventures will be able to take advantage of this for themselves.

The system of business ratings ranks companies in ten different areas - this includes labor protection, compliance with environmental requirements, and tax payments - in total about 300 different indicators.

The research company Sinolytics, which conducted the study for the European Chamber of Commerce, estimated that companies would have to comply with the requirements of about 1,500 different laws and regulations at the national, regional and local levels. On the other side of the scale is access to the Chinese market with 1.4 billion potential customers.

However, they see pluses in the Chamber of Commerce: the requirements will be complex, but the same for all. For the administration of Chairman Xi Jinping, such a rating system is an opportunity to reduce corruption.

Perhaps some of its elements will work for external investors from the start of implementation. For example, the European Chamber of Commerce expects that because of the typical smog in Chinese cities, smog will primarily close production that does not meet environmental requirements. Joint ventures usually monitor this much stricter, and if the rating ranks companies fairly, then they will be able to continue working on such days.

The main fears are related to the fact that part of the rating system will be politically motivated. As citizens receive bonuses for quizzes in the official application of the Communist Party, unusual conditions can be set for companies. And then the rating will turn into another lever of pressure, for example, in China’s trade war with the United States.

nanonewsnet.ru