12 votes

China's social credit system is controlling foreign companies

Posted by nil-admirari
Tags: china, politics, business
http://www.businessinsider.com/china-social-credit-system-controlling-foreign-companies-2018-6

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Title
It looks like China is extending its Black Mirror-like 'social credit system' to overseas companies
Published
Jul 3 2018
Word count
850 words

6 comments

  1. nil-admirari
    (edited )
    Link
    Edit to add: Is this a policy that would fall under the rules of the WTO?

    China's social credit system is known for punishing individuals but it is also being used to control the behavior of foreign companies.

    According to a new report, the system -- which threatens restricted privileges for certain behaviour -- was used to successfully threaten dozens of foreign airlines into adopting the political stance of the Chinese Communist Party on Taiwan.

    The carriers were told if they did not comply the violation would be listed on their credit records.
    Earlier this year foreign companies were required to get an 18-digit 'unified social credit code' which will reportedly help in recording credit violations and trigger sanctions.

    Edit to add: Is this a policy that would fall under the rules of the WTO?

    8 votes
  2. [4]
    SourceContribute
    Link
    That's the point of totalitarianism; world domination. The reality of the regime cannot be questioned anywhere. This is why it's so dangerous, more dangerous than mere authoritarianism.

    That's the point of totalitarianism; world domination. The reality of the regime cannot be questioned anywhere. This is why it's so dangerous, more dangerous than mere authoritarianism.

    6 votes
    1. [3]
      nil-admirari
      Link Parent
      The troublesome, and quite frankly shocking, part is that it is being tolerated across borders. I am not very well versed in international business relations or world trade but this seems to...

      The troublesome, and quite frankly shocking, part is that it is being tolerated across borders. I am not very well versed in international business relations or world trade but this seems to violate the the spirit of cooperative and balanced international trade and business.

      5 votes
      1. [2]
        Dondo
        Link Parent
        I agree with both of you and I think the problem boils down to market, which equals money. Since China is a booming market with millions of new middle class citizens traveling, no company wants to...

        I agree with both of you and I think the problem boils down to market, which equals money. Since China is a booming market with millions of new middle class citizens traveling, no company wants to take a moral stand and lose on the monetary rewards business in and with China brings. From manufacturing in China, because it is cheap, to operating within its borders, because of the billion+ people it opens you up to, I don't think many multinational companies will 'fight' these measures.

        2 votes
        1. nil-admirari
          Link Parent
          Good point. Since China can now reward or punish MNCs and businesses on 'social credits' to achieve what they want in relation to foreign policy then Western nations should follow suit for MNCs...

          Good point. Since China can now reward or punish MNCs and businesses on 'social credits' to achieve what they want in relation to foreign policy then Western nations should follow suit for MNCs with our own social credits rather than complain on twitter about them. Those MNCs that have no morals when it comes to how they treat their workers, participate in tax evasion, harm the environment, participate in influence peddling etc. might find themselves punished for it instead of rewarded for it. EH? Western Nations won't because of our diverse means of governance and because so many of our governments are merely opaque extensions of MNCs anyway.

          2 votes
  3. est
    Link
    I've posted on HN and thought I'd xpost here Here is the system: http://www.gsxt.gov.cn Everyone can query for enterprise basic info, executives info, shareholders name, annual reports (if any),...

    I've posted on HN and thought I'd xpost here

    Here is the system: http://www.gsxt.gov.cn

    Everyone can query for enterprise basic info, executives info, shareholders name, annual reports (if any), and also, as the article says, credit and violations.

    You can type "微软" for Microsoft as an example. (there might be a CAPTICHA where you must drag the tile to the missing place)

    3 votes