Red Star News:

The report to the 20th CPC National Congress made arrangements for the social credit system as one of the systems underpinning the market economy. What achievements have been made in establishing the credit system and strengthening credit oversight in recent years? Thank you. 

Luo Wen: 

Thanks for your question. We know that credit is a pass in the market economy and plays an essential role in improving the market economy system. I will invite Mr. Pu to answer this question. 

Pu Chun:

General Secretary Xi Jinping pointed out that the socialist market economy is a credit economy. Since the 18th CPC National Congress, the market regulation authorities have firmly implemented the decisions and arrangements of the CPC Central Committee and the State Council and established and improved the new-type oversight mechanism, which is centered on the random selection of both inspectors and inspection targets and the prompt release of results, supplemented by oversight of major areas, and based on oversight of credibility . This has reshaped the daily supervision process and realized targeted supervision of enterprises. The oversight efficiency has been constantly improved through coordinated promotion, strongly serving high-quality socio-economic development.

First, a credit information collection and sharing system has been established. A national enterprise credit information disclosure system has been created to legally collect and make public the information of all registered business entities, including their registration, annual reports, administrative licenses, administrative penalties, and random inspections. This has made corporate information more transparent, which is conducive to addressing information asymmetry issues and helps reduce market transaction costs. In addition, the disclosure system has also played a role in encouraging social oversight and guiding society-wide co-governance. Since its launch, the system has collected 5.47 billion pieces of enterprise information, attracting a total of 300 billion visits, with the daily visits exceeding 100 million, and has achieved good social results.

Second, credit constraints and penalties on acts of bad faith have been applied. A management system for abnormal operation list and list of serious legal violations and acts of bad faith has been established and joint punitive actions against bad faith have been conducted so that one dishonest behavior of both individuals and enterprises will result in restrictions at every turn. Meanwhile, the mechanism for protecting the rights and interests of for business entities has been improved, good credit has been restored for some who were once dishonest, and self-correction to reshape the credit has been encouraged. As of the end of February this year, a total of 436,000 pieces of information on administrative penalties were stopped from being made public in advance, 2.87 million records of abnormal operations have been removed from the abnormal operation list, and 9.847 million self-employed individuals have been restored to normal records.

Third, random inspections and supervision have been fully advanced. The random selection of both inspectors and inspection targets and the prompt release of results have realized full coverage on a regular basis, replacing the original inspection system and arbitrary checks involved in daily supervision. The establishment of a supervision system featuring clearly defined rights and obligations, equity and justice, and precision and high efficiency has been accelerated. The supervision actions have been further standardized, and methods have been innovated. Random joint interdepartmental inspections have been actively carried out, checking multiple items during a single inspection. This has not only reduced undue interference from government departments on the independent operation of enterprises but also improved supervision efficiency, saved resources, and cut costs.

Fourth, credit risk classification management has been implemented. Differentiated supervision measures have been adopted according to the credit statuses of business entities. For those with good credit and lower risk, the proportion and frequency of inspections have been reasonably set. For those who have violated the law or have high risks, we have intensified random inspections and enforced strict regulatory measures in accordance with laws and regulations, making the supervision more targeted and precise. As a result, we have not disturbed the honest who abide by the law, yet maintained rigorous warning and deterrence for the dishonest who violate the law and breach trust.

Fifth, we have strengthened credit supervision in key areas. In key sectors such as food, medicine, essential industrial products, and special equipment that affect public safety and the safety of people's lives and property, we have intensified efforts to disclose credit information, restrict dishonest behaviors, and jointly implement punishments. We have accurately identified and rigorously combated illegal and dishonest behaviors, effectively preventing and mitigating risks while ensuring safety measures are in place. Thank you.