As Christmas is approaching, many children might be wondering whether they’re on Santa’s naughty or nice list. Meanwhile, as China's corporate social credit system is rolled out, companies in China are asking themselves whether they’re on any of 42 national-level naughty lists or one of eight nice lists. 

At the end of 2020, the planned first phase of development of China’s corporate social credit system is wrapping up. Announcements that will shed light on the next phase are expected by the end of the year.

A report by China-based policy research firm Trivium released last week provided one of the most level-headed and comprehensive looks into the emerging regulatory technology yet. Below, here’s what we learned from it:

According to the report:

Real problems: The Trivium-USCC report writes that the social credit system began as a response to real problems with compliance: companies frequently ignored court judgments, and even if companies faced consequences the individuals behind them could simply move on and start new companies. The 1999 treatise that first proposed the CSCS complained that a large portion of contract violations are not persecuted and swathes of violators go unpunished. 

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Eliza Gkritsi

Eliza is TechNode's blockchain and fintech reporter. When she isn't obsessing over the rise of distributed ledger technology in China, she helps with editing.