According to state-backed media, the city of Foshan in China’s southern province of Guangdong has developed a blockchain-based corporate social credit system with an automatic credit rating function. Using data from multiple sources, Foshan’s blockchain-based corporate social credit system categorises firms into four credit tiers. The system is set up to contact low-credit businesses and request proof of regulatory compliance, such as documentation of paid penalties, in order to repair credit scores.
The social credit system will collect personal and corporate data in order to monitor and analyse the conduct and dependability of individuals, businesses, and government bodies in China. The social credit ratings take into account financial evidence as well as compliance records such as food safety fines. Companies with a poor score may be compelled to shut or have their licences revoked.
Since 2019, China has pushed ahead with the contentious corporate social credit rating system for domestic enterprises, sparking concerns about corporate privacy and excessive government intrusion.
