Why There Are No Credit Scores in China

Why There Are No Credit Scores in China

Few would dispute that Chinese society suffers from a serious trust problem. After surviving crafty scams and shoddy products for years, Chinese people have become guarded with strangers and cautious in business dealings. Given all that, it would be tempting to celebrate the fact that, according to a May 5 report in Chinese state media, the powerful National Development and Reform Commission (NDRC) has signaled that a nationwide electronic system will be established by 2017 to track each Chinese citizen’s credit history. This would include performance on meeting obligations connected to taxation, government transactions, finance, judicial matters, and traffic violations. But for the system to succeed, Chinese people will eventually need to buy in — and so far, that’s not happening.

Few would dispute that Chinese society suffers from a serious trust problem. After surviving crafty scams and shoddy products for years, Chinese people have become guarded with strangers and cautious in business dealings. Given all that, it would be tempting to celebrate the fact that, according to a May 5 report in Chinese state media, the powerful National Development and Reform Commission (NDRC) has signaled that a nationwide electronic system will be established by 2017 to track each Chinese citizen’s credit history. This would include performance on meeting obligations connected to taxation, government transactions, finance, judicial matters, and traffic violations. But for the system to succeed, Chinese people will eventually need to buy in — and so far, that’s not happening. - See more at: http://www.tealeafnation.com/2014/05/why-there-are-no-credit-scores-in-china/#sthash.ZnrwWfQu.dpuf
Few would dispute that Chinese society suffers from a serious trust problem. After surviving crafty scams and shoddy products for years, Chinese people have become guarded with strangers and cautious in business dealings. Given all that, it would be tempting to celebrate the fact that, according to a May 5 report in Chinese state media, the powerful National Development and Reform Commission (NDRC) has signaled that a nationwide electronic system will be established by 2017 to track each Chinese citizen’s credit history. This would include performance on meeting obligations connected to taxation, government transactions, finance, judicial matters, and traffic violations. But for the system to succeed, Chinese people will eventually need to buy in — and so far, that’s not happening. - See more at: http://www.tealeafnation.com/2014/05/why-there-are-no-credit-scores-in-china/#sthash.ZnrwWfQu.dpuf
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