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China’s Corporate Credit Risk Classification System – What We Know | Dezan Shira & Associates

posted 2 years ago

A classification system under the China corporate credit system will be rolled out nationwide over the next two years. Under the system, companies operating in China will receive a grade based on their risk level for engaging in bad behavior. Higher-risk companies will be subject to more scrutiny and a higher frequency of random inspections, whereas low-risk companies will benefit from less interference from regulatory authorities. The new system aims to improve the business environment by reducing bureaucratic procedures for compliant companies and help authorities better allocate resources for supervision.

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