Social credit system is also called national credit management system or national credit system. The establishment and improvement of the social credit system is one of the important signs of the continuous maturity of China’s socialist market economy. The social credit system is based on a relatively complete system of laws and regulations; the core is the establishment and improvement of credit information sharing mechanisms; the driving force is the cultivation and formation of the credit service market; and the continuous improvement of the competitiveness of the credit service industry as its support; A national social governance mechanism guaranteed by the government’s strong regulatory system.
It is a social mechanism that specifically acts on a country’s market norms. It aims to establish a market environment suitable for the development of credit transactions, and to ensure that a country’s market economy transforms into a credit economy, that is, from the primary payment method as the mainstream. A healthy transition from market transactions to a market transaction with credit transactions as the mainstream. This kind of mechanism will establish a new market rule, so that social capital can be formed, directly guarantee the maturity of a country’s market economy, and expand the scale of a country’s market.
In April 2019, the “Regulations on the Use of Medical Security Funds (Draft for Comment)” pointed out that the medical security administrative department of the State Council is responsible for credit management in the field of medical security across the country and is included in the social credit system. Units and individuals who violate relevant regulations can be granted Punishment measures such as public exposure and inclusion in the list of targets for joint punishment for dishonesty.
Basic summary of Social Credit
For the modern market transaction environment, credit is a kind of ability based on trust, and the ability to obtain funds, materials, and services without immediate payment. The party that accepts the trust pays for the funds, materials, and services obtained within the time period agreed by the party, and the above-mentioned time period must also be recognized by the party granting the trust. Without credit, there is no order, and the market economy cannot develop healthily.
Poor credit status is a weak link in the development of China’s socialist market economy and has become a prominent factor affecting and restricting economic development. The lack of sufficient credit has directly caused many companies to fall into crisis. In the face of this situation, establishing and improving the credit system of the national economy has become a top priority.
If a country’s social credit system is relatively sound, fair and authoritative credit products and credit services have been popularized throughout the country, and credit transactions have become the main means of transactions in its market economy, such a country is usually called a credit country. In credit reporting countries, the products and services of the credit management industry have penetrated into all aspects of society. Enterprises and individuals have a strong sense of credit, pay attention to maintaining credit, and have clear market demand for credit. Therefore, credit reporting countries have better external reputation, and the scope and scale of credit transactions are large, and higher economic benefits can be obtained.
The “12th (2016) China Credit 4.16 Summit Forum” organized by the Peking University School of Economics, Peking University China Credit Research Center and the National Credit Education Alliance (prepared) was held in Beijing on April 16, 2016.
The report “Review of China’s Credit System Construction in 2015 and Outlook for 2016” released at the same time believes that the current problems in China’s social credit construction are the relative shortage of credit theory and talents, the second is that credit laws and regulations are not yet complete, and the third is credit services. The market urgently needs to be regulated. Fourth, credit management and credit supervision are lagging behind. In response to the above problems, the 2016 social credit construction suggested that firstly, we must further promote the open sharing of credit information, secondly, we must accelerate the cultivation of the credit service market, thirdly, effectively improve the effectiveness of the judicial system, and fourthly, strive to explore innovative applications of the credit system.
Functions of Social Credit
A sound social credit system is a prerequisite for credit to function. It ensures that the credit grantor and the trustee follow certain rules to conclude transactions and ensure the fairness and efficiency of economic operations. There are three functions:
1. The social credit system has a memory function and can save the records of dishonest persons;
2. The social credit system has a revealing function, which can promote good and punish evil and improve economic efficiency;
3. The social credit system has an early warning function to prevent dishonest behavior.
Enterprise credit files should have four characteristics:
Information comprehensiveness: The data is comprehensive, and the formed credit file has higher social value. The credit of an enterprise includes public supervision information of various regional and various levels of government functional departments such as qualification licensing, quality inspection, rewards and punishments, litigation, bank credit and credit information, as well as consumers, counterparties, partners, and employees from the market. Evaluation information. The lack of credit in any one aspect may trigger a company’s credit crisis. Therefore, only comprehensive information can truly reflect the company’s credit status, and only such comprehensive credit information can have a higher reference value.
Cross-regional: With economic globalization, cross-regional and cross-border social and economic activities have become more frequent. The regional credit system of a single province and city has lost its meaning. Only a credit file system that has unified national standards and is in line with the world can have The social value of circulation and comparability. This system has the mechanism and characteristics of nationwide coverage and global networking.
Cross-industry: With the development of the economy and the increasingly refined social division of labor, cross-industry transactions have become a necessity. Therefore, a single-industry credit system limits the value and significance of its own existence. This system solves the shortcomings of the industry credit system. Uniformity: The system adopts unified credit investigation standards, credit score (credit rating) calculation methods under a unified mathematical model, unified database and unified query platform throughout the country, thereby ensuring that the credit scores of all corporate credit files are comparable , Versatility and practicality.
Authority: Truth, objectivity, and fairness are the roots of authority. The information collection channel of the third-party credit investigation system directly comes from the relevant government functional departments. The information provided by the information subject is all witnessed and verified by the credit investigation staff, and the information provided by the consumer is all real-named, ensuring the authenticity of the information from the information collection channel; Dynamic, timely, and continuous credit records accurately reflect the dynamic credit status of each enterprise; an independent third-party public solicitation platform ensures the objectivity and fairness of credit records and credit scores. Only truth, objectivity and fairness are authoritative.