Cybersecurity
China's Social Credit Tool to Monitor Companies Sparks Alarm
- System has the potential for discriminatory use, report says
- U.S.-China trade war raises worries about system’s application
This article is for subscribers only.
China’s new tool to monitor companies will be the most comprehensive system created by any government and could put some companies out of business, according to the European Union Chamber of Commerce in China.
The so-called corporate social credit system for companies will use real-time monitoring and processing to collect and interpret data, helping to immediately detect actions that raise or lower a company’s score, the EU Chamber of Commerce said in a report on Wednesday. Keeping on its good side will raise compliance costs and could impact companies’ earnings, it said.