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.
Fast facts
See related article: Beijing budgets $37M for government affairs blockchain platform
- 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.
See related article: China writes blockchain and digital currency into nation’s future
