Jiang Zengwei, Vice Minister of Commerce and group leader for credit system building, presided over a meeting on June 15 to deliberate on stepping up credit system building in commercial field. The meeting listened to briefing about drafting of the Guiding Opinions of MOFCOM on building up of a Credit system in the Commercial Field during the 12th Five-Year Plan Period (Draft for Examination and Approval) (Hereinafter referred as “the Guiding Opinions“), and reviewed and approved the draft in principle.
Jiang stressed that 2011 is the first year of the 12th Five-Year Plan period, and it is of great significance to make full efforts to accomplish the work of credit system building in the commercial field. The group of MOFCOM for credit system building should, in accordance with the requirements of the State Council, continue to formulate and improve related laws and regulations, fight against illegal activities, guide enterprises to rectify marketing behavior, and motivate customers to prevent and fight against counterfeit products, so as to create an environment that everyone is concerned about credit system building. All departments should make plans for implementation according to the requirements of the Guiding Opinions, so as to promote credit system building in the commercial field.
In essence the Guiding Opinions stress the point that access to credit for businesses is regarded as an important element for economic growth. To enhance credit in the commercial area however would require the deepening of the understanding of the role of credit in commercial transaction through education. It would also require legal frameworks for disclosure and compliance, data protection and a regulatory framework for the financial services sector. Development of regional credit information databases, credit risk management services and the sharing of credit information are essential tools to limit the risk. Strengthening industry self-regulations and permit private enterprise and associations to participate in infrastructure was seen to be an important success factor in enhancing the commercial credit system in China.
If some of it comes to fruition there will be plenty of opportunities for companies in the field of credit information, risk management tools and decision support systems. Nevertheless it would be advisable for the Ministry of Commerce to focus first on the availability of accurate and timely public sector information (business and collateral registers) to provide the much needed raw material for credit information and risk management tools so that they can provide value and function effectively.
Source: Ministry of Finance
For further details click on the attachment of the English translation: China – Social Credit System – Mofcom
Chinese Text: MOFCOM Social Credit System十二五信用建设