The corporate social credit system is partly implemented already and is planned to be fully operational during 2020, with comprehensive scoring on regulatory compliance and business conduct that will be linked to punishments and rewards.
The lack of insight about the extent of data collection, transparency and oversight of the system make up main concerns at this point in time.
The system can strengthen competitiveness and supply chain transparency for foreign companies with good regulatory compliance, but there are significant risks that make it imperative for companies to already now review their processes, business partners and government relations.
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