Millions of transactions take place on China’s largest e-commerce platform Alibaba every day leaving a trail of data. The data will be integrated in a platform to promote credibility and transparency of SMEs in China.
“Data needed for building the credit system comes from three sources. First, data generated from e-commerce platforms such as Alibaba’s websites. Second, relevant agencies can authorize to release data, such as that from the Customs, and invoices. Third, data from the industrial and commercial bureaus, courts and IPR protection agencies,” stated Li Duoquan, general manager of Valued-added services, B2B Business Group, Alibaba.
Establishing a credit information system on SMEs seems not as attractive as creating a system covering big corporations. But more than 70 million SMEs have become the backbone of the Chinese economy and the credit system should bring them long-standing benefits.
Spearheaded by the National Development and Reform Commission, the ministry will work together with Alibaba to crack down on scams and frauds aimed at increasing credit scores. “We will launch joint special inspections to cope with the problem. If we discover activities that are conjuring credit records, we’ll blacklist them as soon as possible,” said Lian Weiliang, vice minister of NDRC.
Another suggestion was made to potentially link the SME credit information system with that of the Credit Reference Center of the People’s Bank of China (CCRC) to improve transparency and to prevent fraud.
The Chinese Ministry of Commerce says the lack of credit in business leads to a staggering annual loss of 60 billion yuan. Approximately one third of the losses are due to fake or low-quality products and fraudulent practices. With the credit information sharing system in place, it’s expected that more and more dishonest businesses will be driven out of the market.
Source : China.Org