China will take steps to develop a more extensive social credit system in an effort to improve its business environment, Xinhuanet reported June 6, citing a State Council decision made at an executive meeting chaired by Premier Li Keqiang.
The state council said that a regulatory mechanism would be established and a blacklist would be compiled. Violations of the law, such as counterfeiting and false advertising, will be made public, according to the news agency report. No details of those plans were revealed.
In addition, the council said inspections would be carried out against randomly selected firms by randomly selected inspectors, with the results being quickly disseminated.
The council also said that government departments will need to enhance their own credibility.
"Access to and sharing of information, which can serve to incentivize or discipline, helps reduce transaction costs and improve the business environment," Premier Li reportedly said.
