Shenzhen is expanding its social credit system for businesses, and companies registered outside the city will now be included. Perhaps more importantly, it is improving its development of a “joint mechanism” for “acts of good or bad faith”, with the objective of rewarding trustworthy enterprises or punishing seriously dishonest ones, reports Shenzhen Daily.
Discredited companies will face restrictions in administrative approvals, bidding for government projects and applying for government funds.
Shenzhen was China’s first city to establish a business social credit database. It is now one of the country’s largest, having collected 890 million records. So far, the city government has blacklisted 56,210 businesses and issued credit warnings (redlisted) to another 19,377.