Guiding Opinions of the General Office of the State Council on Accelerating the Construction of a Social Credit System and Establishing a New Regulatory Mechanism Based on Credit - No. 35 [2019] issued by the General Office of the State Council

State Council General Office on Accelerating the Promotion of Social Credit System Construction

Guiding Opinions on Building a New Regulatory Mechanism Based on Credit

Guo Ban Fa [2019] No. 35

People's Governments of all provinces, autonomous regions, and municipalities directly under the Central Government, and all ministries and commissions directly under the State Council:

　　In order to strengthen the construction of the social credit system, deepen the "Delegation, Regulation, and Service" reform, further enhance the fundamental role of credit in innovating regulatory mechanisms and improving regulatory capabilities and levels, better stimulate the vitality of market entities, and promote high-quality development, with the approval of the State Council, the following opinions are hereby put forward.

　　I. Overall Requirements

　　Guided by Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 19th National Congress of the Communist Party of China and the second and third plenary sessions of the 19th Central Committee. Following the basic principles of legality, reform and innovation, and collaborative governance, we will focus on strengthening credit supervision, innovate regulatory concepts, systems, and methods, establish and improve a new regulatory mechanism that runs through the entire life cycle of market entities and connects the pre-, in-, and post-supervision stages, continuously improve regulatory capabilities and levels, further regulate market order, optimize the business environment, and promote high-quality development.

　　II. Innovation in Pre-Event Credit Supervision

　　(1) Establish and improve the credit commitment system. When handling administrative licensing matters applicable to the credit commitment system, if the applicant commits to meeting the approval conditions and submits relevant materials, immediate processing should be granted. For applicants with good credit standing and incomplete application materials but a written commitment to provide them within a specified time limit, they should be accepted first to accelerate the processing progress. The fulfillment of written commitments will be recorded in the credit record and serve as an important basis for in-event and post-event supervision. Applicants who fail to fulfill their commitments will be punished according to the circumstances. We should accelerate the sorting out of administrative licensing matters that can be carried out with credit commitments, formulate standardized credit commitment letters, and publicly disclose them to the public through credit portals at all levels. Encourage market entities to proactively make credit commitments to the public. Support industry associations and chambers of commerce in establishing and improving industry-specific credit commitment systems and strengthening industry self-discipline. (Various regions and departments are responsible according to their respective duties.)

　　(2) Explore the pre-entry integrity education for operators. Make full use of various government service windows at all levels to widely carry out education on the law-abiding and integrity of market entities. When market entities handle registration, approval, filing, and other related business, timely, standardized, normalized, and convenient legal and credit knowledge education should be carried out to improve the awareness of operators in operating legally and with integrity. Integrity education shall not be charged, nor shall it be a necessary condition for market entry. (Various regions and departments are responsible according to their respective duties.)

　　(3) Actively expand the application of credit reports. Encourage various market entities to apply credit reports more widely and proactively in their production and operation activities. In government procurement, bidding and tendering, administrative approval, market access, qualification review, and other matters, the role of credit reports issued by public credit service institutions and third-party credit service institutions should be fully utilized. Explore the establishment of a national unified credit report standard and promote the mutual recognition of credit report results in different regions. (The Development and Reform Commission and the People's Bank of China will take the lead, and various regions and departments will be responsible according to their respective duties.)

　　III. Strengthening In-Event Credit Supervision

　　(4) Establish a comprehensive credit record system for market entities. Based on the list of powers and responsibilities, establish a credit information collection catalog. In the process of registration, qualification review, daily supervision, and public services, timely, accurate, and comprehensive records of the credit behavior of market entities should be kept, especially the filing and tracing of dishonest records, so that they can be checked, verified, and traced. (Various regions and departments are responsible according to their respective duties.) Improve the unified social credit code system for legal persons and non-legal persons. Using the unified social credit code as an identifier, integrate a complete credit record of market entities and disclose it to the public in accordance with the law and regulations through the "Credit China" website, the National Enterprise Credit Information Publicity System, or the Chinese Government website and the portals of relevant departments. Complete the integration of the 12315 market supervision complaint and reporting hotline and information platform, vigorously carry out consumer complaint publicity, and promote operators to fulfill their main responsibilities in consumer rights protection. (The Development and Reform Commission and the State Administration for Market Regulation are responsible.)

　　(5) Establish and improve the voluntary registration mechanism for credit information. Encourage market entities to voluntarily register their qualifications, licenses, market operations, contract performance, and social public welfare credit information on the "Credit China" website or other channels, and publicly make credit commitments to the authenticity of the information, authorizing the website to integrate, share, and apply the relevant information. Verified voluntary registration information can be used as an important basis for conducting credit evaluation and generating credit reports. (The Development and Reform Commission will take the lead, and various departments will be responsible according to their respective duties.)

　　(6) Carry out comprehensive public credit evaluation in depth. The national credit information sharing platform should strengthen coordination and cooperation with relevant departments, integrate various types of credit information in accordance with the law and regulations, conduct comprehensive, standardized, and non-profit public credit evaluation of market entities, regularly push the evaluation results to relevant government departments, financial institutions, and industry associations and chambers of commerce for reference, and disclose them to the public in accordance with relevant regulations. Promote relevant departments to use the results of comprehensive public credit evaluation, combined with departmental and industry management data, to establish industry credit evaluation models to provide more accurate basis for credit supervision. (The Development and Reform Commission will take the lead, and various departments will be responsible according to their respective duties.)

　　(7) Vigorously promote credit-based tiered and classified supervision. Based on a full understanding of credit information and a comprehensive assessment of credit status, based on the results of comprehensive public credit evaluation and industry credit evaluation, the supervised entities should be classified and categorized, and differentiated supervision measures should be adopted according to the level of credit rating. The "double random, one open" supervision should be combined with the credit rating. For market entities with good credit and low risk, the sampling rate and frequency can be reasonably reduced to reduce the impact on normal production and operation; for market entities with moderate credit risk, sampling should be conducted at the regular rate and frequency; for market entities with illegal and dishonest behavior and high risk, the sampling rate and frequency should be appropriately increased, and strict supervision and punishment should be implemented in accordance with the law and regulations. (Various regions and departments are responsible according to their respective duties.)

　　IV. Improving Post-Event Credit Supervision

　　(8) Improve the mechanism for identifying subjects of joint punishment for dishonesty. Relevant departments, based on the dishonest records obtained and identified in the pre-event and in-event supervision stages, shall establish and improve the list system for subjects of joint punishment for dishonesty in accordance with the law and regulations. Based on the results of relevant judicial judgments, administrative penalties, and administrative enforcement, market entities involved in illegal and dishonest behaviors with serious nature, serious circumstances, and significant social harm shall be included in the list of subjects of joint punishment for dishonesty according to procedures. Accelerate the improvement of relevant management measures, clearly define the basis, standards, procedures, objection appeals, and exit mechanisms. The management measures should fully solicit public opinions, and the standards and specific identification procedures should be publicly disclosed in an appropriate manner. Support relevant departments in establishing a list of key attention subjects as needed for supervision. For market entities that have engaged in dishonest behavior but whose severity has not yet reached the standard for identifying subjects of joint punishment for dishonesty, strict supervision measures corresponding to their degree of dishonesty can be implemented. (Various departments are responsible according to their respective duties.)

　　(9) Urge dishonest market entities to rectify within a time limit. Dishonest market entities should seriously rectify within the specified time limit. If rectification is not completed, according to the principle of "who identifies, who talks," the identifying department shall initiate a prompt talk or warning talk procedure in accordance with the law and regulations to urge dishonest market entities to fulfill their relevant obligations and eliminate adverse effects. The talk records will be recorded in the credit records of dishonest market entities, uniformly collected and included in the national credit information sharing platform. Vigorously promote the special governance of dishonesty issues in key areas and take strong and effective measures to accelerate rectification. (Various departments are responsible according to their respective duties.)

　　(10) Deepen the joint punishment of dishonesty. Accelerate the construction of a cross-regional, cross-industry, and cross-field joint punishment mechanism for dishonesty, fundamentally solving the problem of repeated and geographically dispersed dishonest behavior. Establish a list of joint punishment measures in accordance with laws and regulations, dynamically update and publicly disclose it to the society, forming a large-scale joint punishment pattern for dishonesty with administrative, market-oriented, and industry-oriented measures working together and with extensive participation from social forces. Focus on implementing dishonesty punishment measures with strong punishment strength and good regulatory effects, including administrative punishment measures such as restricting dishonest subjects from issuing stocks, bidding, applying for government-funded projects, and enjoying tax incentives in accordance with laws and regulations; market-oriented punishment measures such as restricting access to credit, air travel, and high-level train carriages and seats; and industry-oriented punishment measures such as public criticism and public condemnation. (The Development and Reform Commission takes the lead, and various regions and departments are responsible according to their respective duties.)

　　(11) Resolutely implement market and industry entry bans in accordance with laws and regulations. Focusing on areas directly related to the life and property safety of the people, such as food and drugs, ecological environment, engineering quality, safety production, elderly care and childcare, and urban operational safety, implement strict supervision and increase the intensity of punishment. For market entities and their relevant responsible persons who refuse to perform judicial judgments or administrative penalty decisions, repeatedly violate regulations, and cause significant losses, resolutely implement market and industry entry bans for a certain period of time in accordance with laws and regulations, until they are permanently expelled from the market. (The Development and Reform Commission takes the lead, and various regions and departments are responsible according to their respective duties.)

　　(12) Investigate and hold accountable those who violate laws and are dishonest. Establish and improve a responsibility accountability mechanism. For market entities included in the list of dishonest subjects for joint punishment, impose dishonesty punishment on their legal representatives or principal persons in charge, actual controllers, in accordance with laws and regulations, and include the relevant dishonest behavior in their personal credit records. For government agencies, public institutions, and state-owned enterprises that engage in illegal and dishonest behavior, report to the superior competent authorities and audit departments; for staff who engage in illegal and dishonest behavior, report to their units and relevant disciplinary inspection and supervision, and organization and personnel departments. (Various regions and departments are responsible according to their respective duties.)

　　(13) Explore the establishment of a credit repair mechanism. Dishonest market entities that correct their dishonest behavior and eliminate adverse effects within a specified time limit can carry out credit repair through making credit commitments, completing credit rectification, passing credit checks, receiving specialized training, submitting credit reports, and participating in public welfare and charitable activities. After the repair is completed, various regions and departments should promptly stop publicizing their dishonest records and terminate the implementation of joint punishment measures according to procedures. Accelerate the establishment and improvement of a coordinated and interconnected, one-stop service mechanism to provide efficient and convenient credit repair services for dishonest market entities. Encourage qualified third-party credit service institutions to provide credit reports and credit management consulting services to dishonest market entities. (The Development and Reform Commission takes the lead, and various regions and departments are responsible according to their respective duties.)

　　V. Strengthen the supporting guarantees for credit supervision

　　(14) Focus on improving the level of informatization in credit supervision. Give full play to the role of the national credit information sharing platform and the national "Internet + Supervision" system in information collection and sharing, ensuring that government credit information is "fully collected"; promote interoperability between local credit information platforms and industry credit information systems; and smooth the data flow mechanism between government and enterprises, forming a "single network" of credit information that comprehensively covers all regions, departments, and market entities. Relying on the national credit information sharing platform and the national "Internet + Supervision" system, share market entity basic information, law enforcement supervision and disposal information, and joint punishment information for dishonesty with relevant departmental business systems as needed, and apply it in the process of credit supervision, etc., supporting the formation of a credit supervision coordination mechanism with synchronized data, unified measures, and consistent standards. (The Development and Reform Commission and the General Office of the State Council take the lead, and various regions and departments are responsible according to their respective duties.)

　　(15) Vigorously promote the public disclosure of credit supervision information. Based on the centralized public disclosure of administrative licensing and administrative penalty information, relying on the "Credit China" website, the Chinese Government website, or other channels, further study and promote the online disclosure of information on other administrative actions such as administrative compulsion, administrative confirmation, administrative levy, administrative payment, administrative adjudication, administrative compensation, administrative rewards, and administrative supervision and inspection within 7 working days; promote the public disclosure of information on dishonest persons subject to judicial judgment and execution, and dishonest persons involved in false litigation through appropriate channels, ensuring that "information that should be disclosed is disclosed". (Various regions and departments are responsible according to their respective duties.)

　　(16) Give full play to the supporting role of "Internet +", big data in credit supervision. Relying on the national "Internet + Supervision" system, effectively integrate public credit information, market credit information, complaint and reporting information, and Internet and third-party related information; fully utilize big data, artificial intelligence, and other new generation information technologies to achieve comparable credit supervision data, traceable processes, and monitorable problems. Encourage various regions and departments to combine their actual situations and cooperate with big data institutions to develop credit information in accordance with laws and regulations, and timely and dynamically grasp the operating conditions and regular characteristics of market entities. Make full use of the national "Internet + Supervision" system to establish a risk prediction and early warning mechanism, and to identify and prevent early signs of risks and cross-industry and cross-regional risks. Use big data to proactively discover and identify clues of illegal and irregular activities, effectively preventing illegal and irregular activities that endanger public interests and the life and property safety of the masses. Encourage the use of non-contact supervision methods such as the Internet of Things and video networks to improve the efficiency of law enforcement supervision, achieve standardized, precise, and intelligent supervision, reduce human factors, achieve fair supervision, eliminate problems such as arbitrary inspections and multiple supervision, achieve "one entry, multiple checks", and reduce disturbances to the supervised entities. (The General Office of the State Council, the Development and Reform Commission, and the State Administration for Market Regulation take the lead, and various departments are responsible according to their respective duties.)

　　(17) Effectively increase the protection of credit information security and the rights and interests of market entities. Seriously investigate and deal with illegal acts such as illegal disclosure and alteration of credit information or using credit information for personal gain. Strengthen the construction of credit information security infrastructure and security protection capabilities. Establish and improve a credit information objection and complaint system. For information that market entities have raised objections to, the information providing and collecting units should promptly verify and feedback the results, and information that has been verified to be incorrect should be promptly corrected or revoked. For damage to the legitimate rights and interests of market entities due to incorrect identification of dishonest subjects for joint punishment or incorrect implementation of joint punishment measures for dishonesty, relevant departments and units should actively take measures to eliminate adverse effects. (Various regions and departments are responsible according to their respective duties.)

　　(18) Actively guide industry organizations and credit service institutions to cooperate in supervision. Support industry associations and chambers of commerce authorized by relevant departments to assist in carrying out industry credit construction and credit supervision; encourage industry associations and chambers of commerce to establish member credit records and carry out credit commitments, credit training, integrity publicity, and integrity initiatives, making integrity an important part of industry rules and regulations, and guiding the industry to enhance its awareness of operating legally and honestly. Promote the development of credit services such as credit investigation, credit rating, credit insurance, credit guarantee, performance guarantee, credit management consulting, and training, and give full play to the professional role of third-party credit service institutions in credit information collection, processing, and application. Encourage relevant departments to cooperate with third-party credit service institutions in credit record collection, credit information sharing, credit big data analysis, credit risk early warning, verification of dishonest cases, and tracking and monitoring of dishonest behavior. (The Development and Reform Commission, the Ministry of Civil Affairs, and the People's Bank of China are responsible according to their respective duties.)

　　VI. Strengthen the organizational implementation of credit supervision

　　(19) Strengthen organizational leadership. Various regions and departments should regard the construction of a new regulatory mechanism based on credit as an important measure to deepen the reform of "delegating power, streamlining administration, and improving services", place it in a more prominent position, strengthen organizational leadership, refine the division of responsibilities, and effectively promote implementation. Improve supporting systems for credit supervision and strengthen coordination with other "delegating power, streamlining administration, and improving services" reform items. Departments with market supervision and industry supervision responsibilities should effectively assume the main responsibility for industry credit construction and credit supervision, give full play to the role of industry organizations and third-party credit service institutions, create favorable conditions for public supervision, and integrate to form a strong joint force for credit supervision with the participation of the whole society. (The Development and Reform Commission takes the lead, and various regions and departments are responsible according to their respective duties.)

　　(20) Carry out pilot programs. Focusing on key tasks such as credit commitment, credit repair, joint punishment for breach of credit, and the development and utilization of credit big data, pilot programs on credit building and credit supervision will be organized and carried out. Based on the explorations and innovations of various regions and departments, good experiences and practices in credit building and credit supervision will be summarized, refined, and exchanged in a timely manner, and replicated and promoted on a larger scale. (The Development and Reform Commission will take the lead, and various regions and departments will be responsible according to their respective duties.)

　　(21) Accelerate the establishment of systems and regulations. Promote the formulation of relevant laws on the construction of a social credit system, and accelerate the research and promulgation of regulations such as the Public Credit Information Management Regulations and the Unified Social Credit Code Management Measures. Establish and improve a nationwide unified set of rules and standards for credit supervision, and promptly issue relevant local regulations, government regulations, or normative documents, raising effective practices in credit supervision to the level of institutional norms. Urgently formulate national standards needed for credit supervision. (The Development and Reform Commission and the Ministry of Justice will take the lead, and various regions and departments will be responsible according to their respective duties.)

　　(22) Conduct publicity and interpretation. Various regions and departments should use various channels and forms to conduct in-depth and detailed policy publicity and interpretation work for market entities, allowing operators to fully understand and actively cooperate with new regulatory measures based on credit. Strengthen guidance and training for grassroots and frontline regulatory personnel. Organize news media to widely report and actively publicize credit supervision measures and their effectiveness, creating a good social atmosphere. (The Development and Reform Commission will take the lead, and various regions and departments will be responsible according to their respective duties.)

State Council Office

July 9, 2019

(This document is publicly released)