Foshan city of China’s southeastern province Guangdong launched a blockchain-based corporate social credit system with an automated credit rating function, state-backed media reported on Thursday. 

Fast facts

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  • Foshan’s blockchain-based corporate social credit system rates enterprises into four credit levels using data from various sources. 
  • The system is programmed to ping low-credit enterprises to request evidence of regulatory obedience, such as proof of paid fines, in order to restore credit scores. 
  • China’s social credit system collects personal and corporate data to monitor and assess the behavior and dependability of individuals, companies and government entities. 
  • The social credit rating of Chinese companies considers the firms’ financial documentation as well as compliance records such as food safety fines.
  • A low score for firms may lead to forced shutdowns or license revocation.
  • Since 2019, China has been pushing ahead with the controversial corporate social credit rating system for local firms, raising complaints surrounding corporate privacy and excessive government intervention.

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