Over at the blog Law at the End of the Day, in a recent post 1 Larry Catà Backer observed how to “understand the construction of social credit in China one must look to patterns of” rules on FDIs relevant to credit investigation and rating services. A fundamental text, in this respect, is Announcement No. 1  (available below) on foreign invested credit rating agencies.
The post further discussed how in China’s 2017 Catalogue for the Guidance of Foreign Invested Industries credit investigation and rating services have been moved from the ‘restricted’ to the ‘permitted’ category. The change in status of credit investigation and rating services has been in the making for quite some time.
The existing regulatory framework on credit rating makes only scant references to foreign invested credit rating services 2 Also, as it is well known, the 2015 People’s Bank of China Notice on Performing Well the Preparatory Work for the Credit Reporting Industry had delegated the task to construct the consumer credit rating industry to eight domestic agencies.