A year ago, we wrote here about the enactment and possible implications of a new law in China preventing China-based individuals and entities, including the China-based subsidiaries of non-Chinese companies, from providing certain assistance in criminal proceedings outside of China.… Continue Reading
Numerous stories have appeared in the English-language press about China’s social credit system (SCS). Most of these stories focus on SCS’s system of “scoring” individuals in China. But SCS also applies to companies operating in China and, as it develops, may impact how companies approach anti-corruption compliance.
A full explanation of SCS for companies is beyond the scope of this short blog post; a detailed description can be found in an excellent report issued last week by the European Union Chamber of Commerce in China.
At a high level, SCS establishes a system by which the Chinese government collects information and rates companies across a wide range of areas (e.g., data transfers, finance/taxes, environment) and then can reward or sanction companies based on that information and rating.… Continue Reading