Economics
China Races Toward Plan to Blacklist, Redlist Firms for Behavior
- More than 40 state agencies will share data on all companies
- Technological sophistication of system described as overstated
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China is making swift advances with a system for measuring the social creditworthiness of companies, a sweeping data-collection effort that could solidify Beijing’s control over foreign and domestic enterprises and possibly challenge the dominance of U.S. credit-rating companies.
The corporate social credit system was originally dreamed up two decades ago, but it has since expanded into an ambitious national project that is now taking shape, according to a new, 95-page report from the consulting firm Trivium China for the U.S. China Economic & Security Review Commission. The CSCS effort gathers information on companies from at least 44 state agencies and their branch offices in every province across the country.