15 February, 2021
China intends to shift from a system with market entry barriers and regulated joint venture requirements towards an open market suitable for more international players and investors and more equality with regards to opportunities. The Corporate Social Credit System (CSCS) is the Chinese approach to leverage latest technology to steer its economy to more transparency and compliance which will lead to equal opportunities for business partners – domestic and abroad.
By collecting, integrating, aggregating and processing an enormous amount of data CSCS generates compliance-ratings and -records tracing the companies behaviour as well the behaviour of its individuals.
CSCS is affecting all companies with a footprint in China – being it subsidiaries, joint ventures or other operations.
Examples of potential consequences of non-compliance
Foreign investors active in the Chinese market should take the rapid implementation of the CSCS very seriously and proactively study these specific plans and their likely impact on their respective businesses. Our holistic service offering helps you cover all your blind spots and enhance your opportunities in successful businesses in the Chinese environment.
