China's New Social Credit System Presents Complications
Law360, New York ( October 27, 2016, 11:52 AM EDT) -- Leading organs of China's Communist Party and government have issued a new document that advances the institution of a social credit system making use of big data by which all entities and individuals in China will be rated in accordance with their social credit scores. The document thus constitutes an effort to create a societywide disciplinary system under the Communist Party. Foreign-invested enterprises and other foreign entities may be particularly vulnerable because they have less time and opportunity to create a positive social credit record to offset any negatives that may arise, and because they may have weaker political support in the event of a problem relative to their domestic counterparts. The system can therefore be expected to impose even greater constraints on the activity of foreign-invested enterprises and other foreign entities in China than is already the case....
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