Corporate social credit gets stamped on blockchain in China’s southeast
Foshan city of China’s southeastern province Guangdong launched a blockchain-based corporate social credit system with an automated credit rating function, state-backed media reported on Thursday.
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Foshan’s blockchain-based corporate social credit system rates enterprises into four credit levels using data from various sources.
The system is programmed to ping low-credit enterprises to request evidence of regulatory obedience, such as proof of paid fines, in order to restore credit scores.
China’s social credit system collects personal and corporate data to monitor and assess the behavior and dependability of individuals, companies and government entities.
The social credit rating of Chinese companies considers the firms’ financial documentation as well as compliance records such as food safety fines.
A low score for firms may lead to forced shutdowns or license revocation.
Since 2019, China has been pushing ahead with the controversial corporate social credit rating system for local firms, raising complaints surrounding corporate privacy and excessive government intervention.
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