Three Suggestions For Meeting SCS Compliance Requirements

Corporate compliance is becoming increasingly important in China, especially with the expected nationwide full implementation of the social credit system (SCS) by the end of 2020. SCS assigns social credit scores to each entity (including businesses and other organizations, government officials and individuals) based on the data collected. The scores correspond to various rewards and punishments. The main purpose of SCS, when it relates to businesses, is to create a fair, transparent and predictable business environment.

The SCS includes different rating mechanisms, many of which are operational already. The official launch of the nationwide SCS will weave together all mechanisms into a comprehensive, intricate and interdependent network. It means that enterprises will face stricter compliance requirements and higher risks if they do not follow laws and other rules. This article aims to provide businesses with suggestions on how to face the new challenges imposed by