China on Sunday announced it will launch an incentive initiative for people with good social credit, chinanews.com reported on Sunday, citing Chen Hongwan, an official with the National Development and Reform Commission.
Chen said that some incentive products and services for people with good social credit will be unveiled and an alliance for innovative action to encourage good social credit will be set up, according to the report.
"China's credit system has been relatively backward compared with most advanced countries, but in the past two years China has made a lot of progress thanks to the application of information technology," Tian Yun, director of the China Society of Macroeconomics Research Center, told the Global Times.
The announcement followed a statement by Premier Li Keqiang on Wednesday, where he mentioned how Chinese social credit construction will address issues such as fraud and false advertising, "making life difficult for the untrustworthy," Li said.
Jia Yueting, founder of domestic technology company LeEco, is among the 169 people who have been put on a recent government blacklist that bans them from taking trains or planes in China, said a statement on the website creditchina.gov.cn on June 1.
The 169 people include not only financial market deadbeats like Jia but also those who haven't paid their taxes or those who have misbehaved in airports, on planes and on trains.
"Publishing a list of offenders has made it possible for society to sanction people with low credit. Now what is needed is to perfect the legal framework, with better sharing of credit information, or a better bankruptcy law, so that a complete credit system encompassing individuals, companies and government departments can be achieved," said Tian.
