Corporate Compliance and the Social Credit System in China

Theresa Krause

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The establishment of the Social Credit System since 2014 has been an attempt by the Chinese government to strengthen its regulator...

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Description

The establishment of the Social Credit System since 2014 has been an attempt by the Chinese government to strengthen its regulatory system in the face of a weak judiciary, rampant corruption and a series of corporate scandals. This study examines the related changes in China's regulatory system from the perspective of the enterprise as the main target of regulation. Document analysis and interviews shed light on corporate compliance practices and the impact of the Social Credit System on companies in China, with details on the automotive and securities sectors. The insights gained will benefit business and regulatory academics and practitioners, as well as contributing to the understanding of China's impact on global governance.