China Justice Observer

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State Council Moves to Strengthen Social Credit System - China Legal News

Fri, 15 Jan 2021
Categories: China Legal News

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In December 2020, General Office of the State Council issued the Guiding Opinions on Further Improving the Dishonesty Restraint System and Building a Long-term Mechanism for Credit Construction.

On 18 Dec. 2020, the General Office of the State Council issued the Guiding Opinions on Further Improving the Dishonesty Restraint System and Building a Long-term Mechanism for Credit Construction (关于进一步完善失信约束制度构建诚信建设长效机制的指导意见), which defines the main tasks of improving the dishonesty restraint system and strengthening the social credit system.

The Opinions highlights the following principles to follow: 

(1) Comply with laws and regulations strictly. The records of dishonest behaviors, the determination of the list of seriously dishonest subjects, and the punishment for dishonest behaviors, which are closely related to the vital interests of individuals, enterprises, and other subjects, must operate strictly under the rule of law. 

(2) Define the scope accurately. To prevent improper use and abuse, it’s necessary to accurately define the scope of credit information and the determination of the list of seriously dishonest subjects and reasonably use the disciplinary measures for dishonest behaviors. 

(3) Ensure that the punishment is commensurate with the misconduct. To effectively safeguard the legitimate rights and interests of the credit subjects, disciplinary measures of different types and with different intensity should vary according to the fields in which dishonest behavior occurs, the seriousness of the circumstances and the degree of impact. 

(4) Learn from international experience. Based on our national conditions and fully refer to international practices, prudence is called for to promote the development of the credit system in the fields where there appear social concerns and ununiform understanding and make relevant measures in line with international standards.

Contributors: Yanru Chen 陈彦茹

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