China is establishing a ‘comprehensive system’ for identifying companies’ activities
Reportedly, China is taking decisions to make changes to the domestic business environment that is anticipated to increase the vast amount of data firms must share with the central government of China. The authorities of China want to gather information from several businesses operating in China both domestic and foreign companies alike and meanwhile, composed them into a focused digital database, as per the report released by the European union chamber of commerce in China, in association with China centralized consultancy Sinolytics.
While Beijing persists the system is said to generate a transparent, fair and predictable business environment, there are worries about how the government might utilize information, mainly in light of escalating trade concerns with America. The fresh system could also bring China closer to its aim of tracking the actions of people and businesses so that it can reward behaviors it likes and behaviors it dislikes which named a social credit system.
The new database allows the Chinese government to track as well as monitor all the industrial activities in China. It also wants to improve how firms observe with the law and increase the penalty for those operating with partners involved with illegal activity. A test version of the exclusive database named as National internate+Monitoring system which will be released in the month of September and the last version by the end of the year.
The president of the European Union Chamber of Commerce in China, Joerg Wuttke said that “a newly formed system can help level the playing sector between local and universal businesses in China. It can also impose Chinese law better since there is less space for government officials and We think it has a bright effect on China”, added by him.