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Rebuild Credit after Discipline? China Issues Rules to Restore Credit Information

Mon, 27 Feb 2023
Categories: China Legal Trends

On 11 Jan. 2023, the National Development and Reform Commission (NDRC) of China’s State Council released the “Measures on the Management of Credit Information Restoration after Correction of Dishonest Behaviors (For Trial Implementation)” (hereinafter the “Measures”, 失信行为纠正后的信用信息修复管理办法(试行)).

NDRC says China will not impose permanent disciplinary measures on dishonest entities.

To some extent, the disciplinary system for dishonesty has promoted various social entities to keep promises. However, the purpose of the disciplinary system for dishonesty is not to “abandon” the dishonest entities permanently, but to promote the correction of their dishonest behavior and rebuild their credit. Therefore, credit subjects who meet the relevant conditions can apply for credit information restoration.

What the credit subjects can repair is the dishonesty information, but not the dishonest behavior. In other words, the credit subjects can repair their state of dishonesty at the information level, but cannot “whitewash” the dishonest behavior and restore the honesty between people before the occurrence of the dishonest behavior.

Credit information can be restored by removing it from lists of seriously dishonest entities, stopping the display of administrative punishment information, and restoring other dishonesty information.

 

 

Cover Photo by Akira on Unsplash

Contributors: CJO Staff Contributors Team

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