Construction of Credit System Sees No Basis in Law and Government’s Regulation
Keywords: China credit system, enterprise, reputation, credit management, guarantee, due diligence
The status quo
of the credit system in China calls for the government to issue relative laws and regulations so
as to ensure the enterprises’ smooth development.
With the continuous deepening of economic reform, the operation of enterprises is more likely subject to rules of market economy. In China, however, due to the lack of credit concept and environment, "lack of credit" has become an important factor that restricts economic growth.
Credit is the fundamental base of the market economy. A well market economy in good order needs to put up a credit system, which is capable of allocating social resources and rectifies transactions effectively. A complete credit system is basic guarantee for enterprise's normal operation and reputation as well as healthy running of national economy. Without credit, the market will hardly grow larger in scale.
Enterprises including high-tech enterprises, especially medium and small-sized enterprises, are to receive paramount support form the government, for their proportion in the GNP continuously rising. But the rising enterprises usually lack funds and policy supports that are necessary for their sustainable development. On one hand, banks and local guarantee companies shoulder responsibility to push the growth of enterprises and economic construction; on the other hand they dare not to loan and guarantee for the enterprises due to lack of effective credit management system to ensure the regulation and due diligence of enterprises. Enterprises have demands for loan and financing but are not able to get them; banks and guarantee companies see such demands but dare not to lend.
The root of
such problem is lack of effective credit management, which is used
to distinguish honest enterprises from dishonest ones, to inspire
and support enterprises with good performance, and to warn and get
rid of inferior enterprises. In the meantime, the enterprise
should actively build and maintain their own credit image so that
they gain advantageous positions in market.
The construction of credit system in China still needs government's guidance and laws' restrictions. Governments in all localities have put setting up credit system on their agenda since the initiation of the task in the 3rd session of the 16th congress party of CPC. How to form a credit management mode that fits China's situation has become a subject, for which the government, banks and enterprises have been researching and experimenting.
Source: http://bj.people.com.cn/GB/25527/33619/33784/2534100.html
For more:
China
weighs credit database options (Ⅱ)
Growing
of China Credit Database
Personal Credit is to be kicked off in China
Risk Investment and Risk Management in Business Industry
2009 Chinese Tax Regulations for Non-Resident Enterprises
The What and How of Background Checking
How to Do a Credit Background Check
Insolvency and Corporate Bankruptcy in China
Building a Credit Infrastructure in China
How Your Credit Report and Credit Score are Used
Credit Guarantee Legal System in China
Check Your Mortgage Credit Score - Get the House You Want
Find out Who Phone Number Belongs to
Top 5 Most Valuable Professional Qualification Certificates in China at Present
Top 10 Certified Public Accountants in China
Pre-Employment Check - A Must for All Businesses
Regional Security of China Tourism
SBCS
Investigation Services cover Beijing, Tientsin, Shijiazhuang,
Taiyuan, Huhhot/Hohhot, Shenyang, Changchun, Harbin, Shanghai,
Nanking, Hangchow, Foochow, Nanchang, Tsinan, Chengchow, Wuhan,
Changsha, Canton, Nanning, Haikou, Chongqing, Chengtu, Kewiyang,
Lhasa, Si’an, Lanchow, Xining, Yinchuan, Urmuqi, Taipei, Hong
Kong, Macau and so on.
Hi,guest