State Council Guiding Opinions concerning Establishing and Perfecting Incentives for Promise-keeping and Joint Punishment Systems for Trust-Breaking, and Accelerating the Construction of Social Sincerity
GF No. (2016)33
All provincial, autonomous region and municipal People’s Governments, all State Council ministries and commissions, all directly subordinate bodies:
Completing the social credit system and accelerating the building of a novel market supervision structure with credit at the core benefits the further promotion of governmental streamlining and decentralization of powers, as well as the transformation of government functions, and creating a fair and sincere market environment. In order to establish and perfect incentives for promise-keeping and joint punishment systems for trust-breaking, accelerate the construction of social sincerity, the following Opinions are hereby put forward.
I, General requirements
(1) Guiding ideology.
Comprehensively implement the spirit of the 18th Party Congress and its 3rd, 4th and 5th Plenums, deeply implement the spirit of the important series of speeches by General Secretary Xi Jinping, according to the policy deployments of the Party Centre and the State Council, closely focus on the strategic arrangement of the “Four Comprehensives”, firmly establish notions of innovation, coordination, greenness, openness and shared development, implement the requirements of strengthening and innovating social governance, accelerate the construction of the social credit system, strengthen credit information openness and sharing, use credit incentive and restriction measures according to regulations, build interregional, interdepartmental and intersectoral joint incentives for promise-keeping and joint punishment mechanisms for trust-breaking with common participation by government and society, stimulate market subjects to trade sincerely and lawfully, safeguard the regular market order, and create a sincere social environment.
(2) Basic principles.
– Praise sincerity, punish trust-breaking. Fully use credit incentive and restriction measures to expand incentives for sincere subjects and impose punishment on subjects gravely breaking trust, let the promise-keeper benefit and the trust-breaker face restrictions, and create structures and mechanisms to praise sincerity and punish trust-breaking.
– Joint departmental action, cooperation with society. Through credit information openness and sharing, establish interregional, interdepartmental and intersectoral joint incentive and punishment mechanisms, create a common governance framework with coordinated and joint action by government departments, self-discipline and management by sectoral organizations, vigorous participation by credit service bodies, and broad supervision by social public opinion.
– Rely on laws and regulations, protect rights and interests. Strictly rely on the provisions of laws, regulations and policies, and scientifically define acts of promise-keeping and trust-breaking in launching joint incentives for promise-keeping and joint punishment mechanisms for trust-breaking. Establish and complete credit recovery, objection and complaints mechanisms, and protect the lawful rights and interests of parties concerned.
– Emphasize focus points, comprehensively move matters forward. Persist in a problem orientation, strive to resolve the present problems of trust-breaking in focus areas, which harm the public interest and public security, to which the popular masses react strongly, and that create a negative influence on economic and social development. Encourage and support local People’s Governments and relevant departments in innovating and demonstrations, progressively extent incentives for promise-keeping and punishment mechanisms for trust-breaking to all areas of the economy and society.
II, Complete mechanisms to praise and incentivise sincere conduct
(3) Select and display models of sincerity through many channels. Establish administrative counterparts with good credit situations, models of sincerity and virtue, and outstanding young volunteers determined by relevant departments and social organizations who implement categorized credit supervision and management, as well as sincere members recommended by sectoral associations and chambers of commerce, sincere subjects unearthed by news media, etc. as models of sincerity. Encourage relevant departments and social organizations to establish all kinds of subject credit records in the process of supervision, management and service, present persons without a single credit record blemish and relevant models of sincerity to society, and implement incentives for promise-keeping together with other departments and social organizations. Encourage sectoral associations and chambers of commerce to perfect credit evaluation mechanisms for member enterprises. Guide enterprises to actively issue comprehensive credit commitments or special commitments concerning product and service quality, etc. openly issue product service standards and other self-made statements, accept social supervision, and create a good atmosphere for enterprises to compete in becoming models of sincerity.
(4) Explore the establishment of “green channels” for administrative examination and approval. In the process of dealing with administrative approvals, “green channels”, “fast track acceptance” and other convenient service measures may be implemented for administrative counterparts who are models of sincerity or have not had negative credit records for three successive years may, on the basis of the real circumstances. Except for materials of which laws and regulations demand the provision, where a part of application materials is not complete, administrative counterparts meeting conditions may, if they commit in writing to provide them within the provided time limit, file [their application] for priority handling, to accelerate the handling process.
(5) Priority provision of public service conveniences. In the implementation of all kinds of preferential government policies for financial capital arrangements, supplementary preferential policies for attracting investment and raising funds, etc., priority consideration is to be given to sincere market subjects, and support strengthened. In areas including education, employment, establishing businesses, social security, etc., focus support and preferential conveniences are to be granted to sincere individuals. In trading activities of relevant public resources, credit point increases and other such measures are to be adopted according to the law and according to contract for sincere market subjects.
(6) Optimizing supervision and management arrangements for sincere enterprises. All levels’ market supervision and management departments shall, according to the credit records and credit evaluation categories of their supervision counterparts, focus on using big data methods to perfect supervision and management measures during and after [trading activities], and provide convenient services to market subjects. Optimize the frequency of inspections for sincere enterprises meeting certain conditions in daily inspections and special inspections.
(7) Reduce costs for market trading. Encourage relevant departments and work units to launch incentive products for promise-keeping such as “easy lending for good taxpayers”, “easy lending for the trustworthy”, “easy debt issuance for the trustworthy”, etc. , guide financial bodies, commercial sales bodies, and other such market bodies to consult and use market subjects’ credit information, credit scores and credit evaluation reports, to grant preferences and conveniences to market subjects, ensuring that promise-keepers obtain ever more opportunities and tangible benefits in the market.
(8) Forcefully recommend sincere market subjects. Relevant departments in all levels’ People’s Governments shall timely publish positive credit information concerning sincere market subjects on their governmental websites and the “Credit China” website, give priority to recommending sincere enterprises during activities such as trade fairs, bank-enterprise linking, etc., to let credit become an important reference factor in the market allocation of resources. Guide credit information bodies to strengthen their collection of positive information of market subjects, and enlarge the proportion of incentivizing scoring in sectoral areas where reports concerning problems with sincerity are relatively concentrated. Promote sectoral associations to strengthen sincerity construction and sectoral self-discipline, commend sincere members, and tell the sector’s “sincerity story” well.
III, Complete measures to restrict and punish trust-breaking acts
(9) Implement joint punishments against trust-breaking acts in focus areas and of a grave nature. On the basis that relevant departments and social organizations deal with and assess trust-breaking acts within their own areas according to laws and regulations, promote that other departments and social organizations adopt joint punishment measures against grave acts of trust breaking according to laws and regulations, through information sharing. The focus points include: first, grave trust-breaking acts gravely endangering the personal health and life security of the popular masses, including food and drugs, ecological environment, project quality, production safety, fire safety, mandatory product authentication and other areas. Second, grave trust breaking acts that gravely destroy a fair and competitive market order and the regular order of society, including bribery, tax evasion and tax fraud, malicious evasion of debt, malicious arrears in payment or service fees, malicious arrears in salary payment, illegal fund-raising, contract fraud, pyramid selling, unlicensed business operations, sales of fake and shoddy products and wilful infringement of intellectual property rights, loaning or borrowing qualifications to enter tenders, illegal budding or clustered budding, false advertising, infringement of the lawful rights and interests of consumers or investors in negotiable securities, grave destruction of the communication order in cyberspace, gathering a mob to bring social order into chaos, etc. Third, gravely trust-breaking acts of refusing to carry out statutory duties, or gravely influencing the credibility of judicial bodies and administrative bodies, including where parties who, after a judicial body or administrative body issues a judgment or decision, having the capacity to implement it, do not implement it, evade enforcement, etc. Fourth, acts of refusing to carry out national defence duties, refusing or evading military service, refusing or delaying the commandeering of civil resources or obstructing the transformation of civil resources that have been commandeered, endangering national defence interests and destroying national defence facilities.
(10) Strengthen administrative restrictions and punishments for trust-breaking acts according to laws and regulations. Adopt administrative restrictions and punitive measures according to laws and regulations against gravely trust-breaking subjects, all localities and all relevant departments should list them as focus supervision targets. Strictly examine and verify administrative examination and approval clauses, strictly control the issuance of production permits, limit the new addition of project examination, approval and verification, limit share issuance, market listing or bond issuance, limit listing and fundraising on the nationwide share transfer system, limit the initiation, establishment or participation in financial bodies as well as small-value loan companies, financial guarantee companies, start-up investment companies, Internet finance platforms and other such bodies, and limit engagement in Internet information services. Strictly limit application for financial funding programmes, limit participation in relevant public resource trading activities, and limit franchising in the operation of basic infrastructure and public undertakings. Implement market and sectoral entry prohibition measures against enterprises gravely breaking trust as well as their legal representative, main responsible persons and the registered enforcement personnel that has direct responsibility for the trust-breaking act. Timely revoke the honorary titles of gravely trust-breaking enterprises and their legal representative, responsible persons, high-level managers and the directors, shareholders and other such personnel who have direct responsibility for the trust-breaking act, and cancel their qualification to participate in competitions and awards.
(11) Strengthen market restrictions and punishments for trust-breaking acts. Relevant departments and bodies shall, with the uniform social credit code as index, timely make public and disclose information relevant to gravely trust-breaking subjects, to make it convenient for the market to distinguish trust-breaking acts and prevent credit risks. Stimulate relevant enterprises and individuals to carry out statutory duties, implement measures such as restrictions on leaving the borders, restrictions on the purchase of immovable property, traveling on aircraft, traveling on high-class trains and seats, on tourism and holidays, on staying in star-ranked hotels and other such conspicuous consumption acts by gravely trust-breaking subjects who have the capacity to carry out [their obligations] but do not carry them out. Support credit information bodies in collecting information concerning grave trust-breaking acts, and enter them into credit records and credit reports. Guide commercial banks, securities and futures trading bodies, insurance companies and other such financial bodies to raise lending rates or property insurance rates of gravely trust-breaking subjects, or limit their provision of loans, recommendations, sales, insurance and other such services, according to the principle of risk valuation.
(12) Strengthen sectoral restrictions and punishments for trust-breaking acts. Establish and complete sectoral self-discipline treaties and professional ethics standards, and promote the construction of sectoral credit. Guide sectoral associations to perfect intra-sector credit information collection and sharing mechanisms, and enter acts gravely violating trust into members’ credit files. Encourage sectoral associations to collaborate with qualified third-party credit service bodies to launch credit ranking and evaluation of member enterprises. Support sectoral associations to take measures such as warnings, intra-sector reporting for criticism, public condemnations, not granting entry, persuasion to resign and other such punitive measures against trust-breaking members, according to sector standards, sector regulations, sector conventions, etc., in view of the gravity of the circumstances.
(13) Strengthen social restrictions and punishment for trust-breaking acts. Fully give rein to the role of all kinds of social organizations in guiding social forces to broadly participate in the joint punishment for trust-breaking. Establish and perfect trust-breaking reporting mechanisms, encourage the public to report grave trust-breaking acts by enterprises, and maintain the secrecy of information of the reporting person. Support relevant social organizations in raising public interest litigation against mass infringement acts such as environmental pollution, harm to the lawful rights and interests of consumers or public investors, etc. Encourage fair, independent and qualified social bodies to launch big data public opinion monitoring concerning trust-breaking acts, compile and issue regional and sectoral credit analysis reports.
(14) Perfect individual credit records, and promote that joint punishment measures are carried out at the personal level. At the same time that grave trust-breaking acts by enterprises and undertaking work units are entered into the enterprise and undertaking work unit credit records, they are to be entered into the individual credit records of their legal representative, main responsible persons and other persons with direct responsibility. At the same time that joint punishment is taken against trust-breaking enterprises and undertaking work units, corresponding joint punishment measures are adopted against the relevant responsible persons according to the provisions of laws, regulations and policies. Ensure that joint punishment for trust-breaking is carried out at the personal level through establishing and perfecting integral individual credit record databases and joint punishment mechanisms.
IV, Building coordination mechanisms for joint incentive mechanisms for promise-keeping and joint punishment mechanisms for trust-breaking.
(15) Build trigger and feedback mechanisms. Under the system of the Interministerial Joint Conference for the Construction of the Social Credit System, establish an initiating and response mechanisms for joint incentives for promise-keeping and joint punishment for trust-breaking. The initiating departments for joint incentives for promise-keeping and joint punishment for trust-breaking in all areas are responsible to determine the incentive and punishment target, the implementing departments are responsible for adopting the corresponding joint incentive and joint punishment measure concerning relevant subjects.
(16) Implement ministerial and provincial coordination, and cross-regional joint action. Encourage all localities to initiate ministerial and provincial coordination and cross-regional joint incentives and punishments concerning models of sincerity and gravely trust-breaking subjects they have identified within their administrative areas. Fully give rein to the leading role of the Interministerial Joint Conference for the Construction of the Social Credit System, establish and complete cross-regional, cross-departmental and cross-issue area credit system construction collaboration mechanisms, strengthen credit information sharing and mutual recognition of credit evaluation results.
(17) Establish and complete credit information publication mechanisms. Promote the openness of government credit information, comprehensively implement systems for the publication of information concerning administrative permission and administrative punishment information online. Except where laws and regulations provide otherwise, county-level and higher People’s Governments and their departments must publish information concerning administrative permissions and administrative punishments for natural persons, legal persons and other organizations through governmental websites within seven days, timely submit it for collection on the “Credit China” website, and provide “one-stop” inquiry services to society. Relevant information concerning enterprises is to be published according to the provisions of the provisional regulations concerning the publication of enterprise information on the enterprise credit information publication system. Promote judicial bodies to publish judicial verdicts, a name list of persons subject to enforcement for trust-breaking and other such credit information of the “Credit China” website.
(18) Establish and complete credit information collection, sharing and use mechanisms. Rely on the National E-Government External Network, establish nationwide credit information sharing platforms, and give rein to the pivotal role of credit information collection and sharing. Accelerate the establishment and completion of credit information sharing platforms in all provinces (regions, municipalities) and all sectoral credit information systems, promote the construction of projects such as the young volunteers’ credit information system, collect and integrate credit information from their own regions and sectors, and realize interaction, interconnection and information sharing with the nationwide credit information sharing platform. Rely on the nationwide credit information sharing platform, and establish credit information management systems concerning joint incentives for promise-keeping and joint punishment for trust-breaking on the basis of signing memoranda of collaboration with relevant departments, and ensure dynamic coordination functions for initiation and response, information delivery, enforcement feedback, credit recovery, dispute settlement, etc. All levels’ People’s Governments and their departments shall embed the enquiry and usage of credit information on the national credit information sharing platform into examination, approval, supervision and management workflows, to ensure that “inspections are made where due, and rewards and punishments achieve their purpose”. Complete information sharing mechanisms between government and credit investigation bodies, financial bodies, sectoral associations and other such organizations, stimulate the interaction and merging of government credit information and social credit information, and give rein to the role of joint punishment for promise-keeping and joint punishment for trust-breaking to the greatest extent.
(19) Standardizing credit whitelist and blacklist system. Incessantly perfect “white list” systems for models of sincerity and “black list” systems for subjects gravely breaking trust, standardize whitelist and blacklist production and distribution activities in all areas according to laws and regulations, and establish and complete withdrawal mechanisms. Under the precondition of guaranteeing independence, fairness and objectivity, encourage relevant mass organizations, financial bodies, credit investigation bodies, ranking bodies, administrative associations, etc., to provide the information about the “white lists” and “black lists” their produce to government departments for reference and use.
(20) Establish incentive and punishment measure list structures. On the basis of memoranda of understanding in relevant areas, comb through joint incentive and punishment items determined in laws, regulations and policies, establish a list of joint incentives for promise-keeping and joint punishment measures for trust-breaking, which are mainly to be divided into two categories: a first category comprises mandatory measures, meaning incentive and punishment measures that must be jointly implemented according to the law; a second category comprises recommended measures, meaning they are recommended by the various sides involved, conform to the policy orientation of praising sincerity and punishing trust-breaking, and all localities and departments may implement these on the basis of their real circumstances. The Interministerial Joint Conference for the Construction of the Social Credit System shall summarize experiences, incessantly perfect the list of measures in these two categories, and promote the construction of related laws and regulations.
(21) Establish and complete credit recovery mechanisms. The sponsoring departments of joint punishment measures and the implementing departments shall, according to the provisions of laws, regulations and policies, determine the joint punishment period for all kinds of trust-breaking activities. Where the trust-breaking act is rectified within a provided time period, and its harmful influence undone, it will no longer be a target for joint punishment. Establish social encouragement and care mechanisms that benefit self-rectification and autonomous self-renewal, and support individuals who have broken trust to recover their individual credit through ways such as social public interest service, etc.
(22) Establish and complete measures to protect the rights and interests of credit subjects. Establish and complete credit information objection and complaints structures. Relevant departments and work units shall, where they actively discover or discover through an objection raised or complaint filed by a market subject when carrying out joint punishment measures for trust-breaking, timely notify the information providing work unit for verification, the information providing work unit shall verify the matter and issue feedback. The joint punishment measure will provisionally not be implemented during the period in which information verification takes place. Information found to be erroneous shall be timely corrected or deleted. Where joint punishment measures taken erroneously damage the lawful rights and interests of relevant parties, relevant department and work units shall vigorously adopt measures to restore their reputation, and eliminate the harmful influence. Relevant subjects are to be supported to defend their lawful rights and interests through administrative reconsideration, administrative litigation and other such means.
(23) Establish tracking and validity inquiry mechanisms. All localities and all relevant departments must establish and perfect joint credit incentive and punishment work structures, fully use relevant credit information management systems and the nationwide credit information sharing platform, establish and complete joint credit incentive and punishment tracking, monitoring, statistics and evaluation mechanisms as well as establish corresponding supervision, inspection and assessment systems. Departments and work units who are weak in collecting and sharing credit information, and in the implementation of incentive and punishment measures will be subject to reports and supervised rectification, in order to realistically implement all joint incentive and joint punishment measures satisfactorily.
V Strengthening the construction of legal and regulatory structures and a sincerity culture
(24) Perfect corresponding laws and regulations. Continue to research and elucidate legislation in the area of social credit. Accelerate the research and progress of legislation work in areas such as credit information collection, sharing, publication and use, as well as joint punishment for trust-breaking acts. According to the requirements of strengthening credit restrictions and coordinated supervision, all localities and all departments shall put forward suggestions for the revision of relevant provisions in current laws, regulations, rules and normative documents or conduct focused revisions.
(25) Establish and complete standards and norms. Formulate standards for credit information collection, storage, sharing, publication, usage and credit evaluation, categorized credit management, etc. Formulate credit information sharing platform construction standards at all levels, unify data forms, data interfaces and other such technological requirements. All localities and all departments must, in integration with their concrete situation, formulate work procedures and operational norms for credit information, collection, sharing, publication and use, as well as joint incentives for promise-keeping and joint punishment for trust-breaking.
(26) Strengthening education about sincerity and the construction of a sincere civilization. Organize forces from all walks of society to guide the broad market subjects in doing business sincerely and according to the law, establish the idea that “sincerity lets business thrive”, organize that news media and many other channels give publicity to sincere enterprise and individuals, and create a thick social ambience. Strengthen moral restrictions on trust-breaking acts, perfect social public opinion supervision mechanisms, strengthen supervision over trust-breaking subjects through newspapers, periodicals, radio, television, the Internet and other such media, expose trust-breaking cases with a vile influence on society and grave circumstances according to the law, launch mass appraisal, discussion and criticism activities, and shape public opinion pressure and moral constraints on acts gravely breaking trust, strengthen education and assistance for trust-breaking individuals through schools, work units, communities, households, etc., and guide them to timely amend their trust-breaking ways. Strengthen sincerity propaganda and education for responsible persons in enterprises, students and the young masses, and strengthen professional ethics construction, with sincerity as an important component, for auditors and accountants, tour guides, insurance brokers, civil servants, etc. Strengthen propaganda, reporting and case analysis of joint incentives for promise-keeping and joint punishments for trust-breaking, and carry forward the Socialist core value view.
(27) Strengthen organizational implementation, supervision and inspection. All regions and all relevant departments must make the implementation of joint incentives for promise-keeping and joint punishment for trust-breaking into an important measure in pushing forward the construction of the social credit system, earnestly implement these Opinions and formulate concrete implementation plans, realistically strengthen organizational leadership, provide the necessary guarantees in term of work bodies, personnel allocation, project funding, etc., and guarantee that all joint incentives and all joint punishment mechanisms are implemented satisfactorily. Encourage relevant regions and departments to take the lead and carry out advance trials, build long-lasting mechanisms through signing memoranda of cooperation, rolling out normative documents or many other methods, incessantly enrich the content of credit incentives, and strengthen credit restriction measures. The National Development and Reform Commission must strengthen comprehensive planning, timely track and master the progress of work, and urge and inspect the implementation of tasks and report this to the State Council.
30 May 2016