Navigating China’s Social Credit System

November 5, 2020
All Posts

Navigating China’s Social Credit System

Launched earlier this year, China’s controversial social credit system has provoked widespread reactions and it is fast becoming a seminal piece of China’s business proceedings. This makes getting to grips with the system of vital importance for those companies and business owners who are operating in the Chinese market. But unfortunately this isn’t the case, a recent study surveying 197 European companies active in China proved that over 60% of respondents did not have any perceptions or understanding of the system as of yet.

In Mid-October we held PTL Group’s annual China Business Club meeting. Our UK Lead, Dor Barak, picked apart the Social Credit System and provided insights into the following topics:

  • What China’s Social Credit System actually is
  • The rationale behind the system
  • The ‘Master Database’
  • The Black & Red lists
  • The system’s Rewards & Punishment mechanisms
  • Some potential positives from the Social Credit System
  • How to do business in China alongside this system

Dor also explained the practical implications that the system might have on foreign companies that are considering embarking on a China market entry project.

His talk and presentation are now available to watch:


The main takeaway from all of this is that the Social Credit System is here to stay. And despite the natural uneasiness that may come with it, it should not deter foreign companies from starting a business in China. The idea here is to strive to get the most out of this system rather than to ignore and potentially lose out.

Need help with your business operation in China?

Contact Us