China’s Social Credit System Controlling Businesses: Domestic and Foreign

China’s social credit system has been used to control private citizens in alarming ways. Now businesses are training staff on how to avoid falling victim to it.

In China companies are already monitored as part of the social credit scheme. “Bad companies” face higher taxes, more regulatory scrutiny, and reduced access to business loans.

A problematic aspect of the scheme is if a company is blacklisted then another company doing business with that company will receive negative marks against it. Thus the affect can domino down the business network.

Foreign companies have been warned already by China, specially US companies and anyone who has criticised Chinese government treatment of Uyghur Muslims.

A report conducted by Dezan Shira & Associates into the effects of the system concluded that businesses working in China:  “undertake a supply chain audit and conduct due diligence on business partners given the inclusion of partners in social credit assessments.”

“Businesses should also not forget to assess their IT and data security strength since they will need to transmit data to the government more frequently and in greater numbers,” the authors added.

Read More: Breitbart