Social Credit Weekly News Summary – 24th July

Welcome to this week’s edition of the News Summary at China’s Social Credit System – A Collection of Documents blog. As part of the joint project launched by the Coalition for Peace and Ethics and the Foundation for Law and International Affairs, this post brings you the three most important developments in the social credit system  that occurred from 17th to 23th July 2017.

Administrative Measures on the Licencing of Telecommunication Business Operations Issued

The ‘Administrative Measures on the Licencing of Telecommunication Business Operations, first issued in 2009, were repealed by a new set of Measures (original document reproduced here). The biggest novelty of the 2017 Measures lies in the attempt to implement provisions of the ‘State Council Opinion on the ‘Business Licence First and Regulatory Licence Later’ Reform, and on Strengthening Ex Durante, Ex Post Supervision‘ by strengthening credit mechanisms, and by making licencing of telecommunication enterprises conditional upon their good credit record. The Measures have introduced a black list of telecommunication enterprises that break trust, and a list of negative information. Negative information includes, but is not limited to, receiving administrative sanctions from telecommunication management authorities, omitting to file annual reports, etc. Breaches of trust refer to conducts  that have been punished through such measures as a cancellation of licence. Inclusion on the black list has the most immediate consequence of making telecommunication enterprises unable to apply for a business licence. The official version of the Measures has been published on the website of the Ministry of Industry and Information Technology. [read more here]

114 Electric Power Industry Enterprises Sign Self-Regulation Agreement

On July 18, the China Electric Power Enterprises Federation (also known as China Electricity Council) convened a meeting on the construction of a social credit system in the electric power industry. At the meeting, 114 enterprises decided to sign a ‘Self-Regulation Agreement on Credit in the Electric Power Industry’. The Agreement was drafted and adopted to implement the Guiding Opinion on the Construction of Credit in the Electric Power Industry (2015 – 2010) [original document reproduced here]. Together, both documents have created a rating system divided in three categories and 12 levels. According to the Jinrongjie website, the next steps will see adoption of a system of black lists and red lists in the electric power industry. The full text of the Agreement can be found on the Federation’s website, at this URL http://www.cec.org.cn/  [read more here]

National Development and Reform Commission Publishes Red List of Subjects that Keep Promises, and Black List of Subjects that Break Trust. 

The Legal Evening News (Fazhi Wanbao) has reported how the National Development and Reform Commission has released a black listof subjects that break trust, and red lists of subjects that keep promises.

The list is divided in 10 different ‘chapters’, which include compliance with tax obligations, safety production, customs regulations, but are not limited to them. For instance, one important part of the list was compiled by the Ministry of Education, and contains information about 381 diploma mills. The list was compiled to implement provisions of the ‘State Council Opinion on Establishing and Perfecting a Joint Incentive Mechanism for Those Who Maintain Trust, and a Joint Punishment Mechanism for Those Who Break Trust’. According to the National Development and Reform Commission, to date more than 60 ministries and departments have signed joint memoranda, to implement more than 100 different reward or punishment measures, to be enforcd jointly across provinces, departments, and business sectors [read more here]

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