China to Optimize Enterprise Credit Rating System

China’s Ticklist to Improve Domestic Product Quality and Consumer Trust

• Improve product quality standards and optimize the enterprise credit rating system.

• Encourage enterprise to formulate internal standards that are more stringent than Chinese national or industry standards.

• Draft an administrative measure to strengthening the regulation of products sold online.

China will roll out a credit system nationwide. Enterprises with a proven track record will be included into a “positive list” and subject to facilitated administrative approval aptly dubbed the “green path” (expedited market access and reduced stringency/rate of inspection/testing). Blacklisted enterprises may suffer disruptions to normal market access and will also be subject to secondary financial punishments such as more frequent sampling inspection, heightened stringency of routine surveillance and possibly an increase in testing rate.