Foreign companies operating in China are unprepared for tougher sanctions under a corporate “social credit” system imposed by Beijing, a European business group has warned.
Chinese regulators from tax officials to customs agents are increasingly rating companies according to compliance with regulations, and sharing “blacklists” of corporations found to have violated rules.
Beijing plans to combine those ratings into a single database that could be operational by next year, the EU chamber of commerce said in a report.
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