The Communist Party of China’s 20th National Congress report pointed out that “accelerate the development of the digital economy, promote the deep integration of the digital economy and the real economy, and build digital industrial clusters with international competitiveness.”
The credit investigation industry is an important part of China’s digital economy and a typical embodiment of data element supply and data service industry under the background of digital economy. The construction of commercial credit information system plays an irreplaceable role in the prevention and resolution of financial risks and the vigorous development of China’s digital economy. The demand for business credit reports is also growing.
Current situation of credit system construction
After decades of construction, China’s credit investigation system has established a framework based on the Constitution, Civil Code and Criminal Law, the Network Security Law, the Personal Information Protection Law and the Data Security Law, and the administrative regulations of the Credit Investigation Industry as the basic norms. The Interim Measures for the Management of Personal Credit Information Basic Database, the Measures for the Management of Credit Reporting Business, the Measures for the Management of credit reporting Institutions and other departmental regulations and normative documents are the overall legal framework system with specific requirements, which plays a supporting role in establishing a credit reporting system covering the whole society and promoting the steady development of economy and finance.
History of credit system construction and development
Initial stage (before 2013)
In 1997, the People’s Bank of China began to build a bank credit registration and consultation system, and the construction of the credit information system has yet to start. In 2005, the People’s Bank of China established a national centralized and unified credit investigation system for enterprises and individuals, and issued Decree No. 3 at the same time, establishing China’s first credit investigation system at the level of departmental rules and regulations, and putting forward standard requirements for the collection, inquiry and information protection of personal credit information, laying the foundation for the development of credit investigation system construction.
Development stage (2013-2023)
2013 is the first year of the rapid development of China’s information network, Internet big data, artificial intelligence technology is widely used, the credit information system update iteration to the second generation system has entered a new stage of development, facing new propositions and new challenges such as network data security and personal information protection.
In 2013, The State Council issued the first administrative regulations on the credit investigation industry “Regulations”, and in the same year, the Standing Committee of the National People’s Congress issued the “Decision on Strengthening the Protection of Internet Information”, proposing the protection of personal information and regulating the collection and use of personal information in online activities.
Since 2016, the state has successively promulgated the “Civil Code”, “Network Security Law”, “Data Security Law” and “Personal security Law” and other laws related to credit investigation. These laws and regulations set up a solid system framework for the construction of the credit investigation system in the fields of civil rights and obligations, network security, data security, and personal rights and interests protection.
Since 2013, the People’s Bank of China has successively issued a series of departmental rules and normative documents, including the Interim Measures for the Management of Credit Rating Business, the Measures for the Management of the filing of Enterprise Credit Agencies, the Measures for the Management of Credit Investigation Business, the Procedures for Handling Credit Investigation Complaints, and the Notice of the People’s Bank of China on Strengthening credit Investigation Compliance Management. It provides a basis for the compliance development, supervision and management of credit investigation business.
High quality development stage (2023 to present)
At the end of 2022, the draft of the Social Credit System Construction Law has been open to the public for comments, and the law sets up a special chapter to establish the legal principles of the credit industry, which is the first superior law in the field of credit information system since the introduction of the Regulations, and the future introduction of the law will play a fundamental role in promoting the high-quality development of the credit information system construction.
At the end of 2022 and the beginning of 2023, the CPC Central Committee and The State Council successively issued the Opinions on Building a Data Basic System to Better Play the Role of Data Elements and the Overall Layout Plan for the Construction of Digital China, providing institutional support for promoting the efficient circulation and use of data and empowering the real economy, and the construction of China’s credit investigation system has entered a stage of quality improvement and acceleration.
Combined with the characteristic requirements of building a basic system of data elements, the construction of China’s credit investigation system will focus on promoting the compliance and efficient circulation and use of credit investigation data and enabling economic and financial development, focusing on the sound construction of systems in the fields of data property rights, data elements circulation and trading, income distribution, and governance.
Characteristics of credit system construction and development
Pay attention to personal information protection
The current credit investigation legal system under the leadership of the Constitution embodies the values of safeguarding individual dignity and protecting individual rights and interests, and runs through the fundamental idea of “credit investigation for the people”. Through the standardization and limitation of information processing, the security of network data is fully guaranteed, the rights of informed consent, inquiry, objection and relief are granted to individuals, and the rights and interests of personal information subjects are protected in multiple dimensions, which fully reflects the fundamental purpose of the construction of China’s credit investigation system to serve the people wholeheartedly.
Balance development with security
The design concept of the credit investigation legal system aims to maintain the balance between the protection of personal information rights and interests and the rational use of personal information, reflect the dialectical unity of legal fairness and justice and efficiency value, build an overall system and rules with clear rights and responsibilities, effective protection and standardized use, promote the rational and effective use of personal information data according to law, and promote the steady and long-term development of the digital economy and credit investigation industry.
Form a multi-level framework system
First, at the legal level, the Constitution, Criminal Law, Civil Code and Individual Protection Law are the legal basis of the credit investigation industry.
The second is the “Regulations”, “Order No. 3″ and “Measures for the Management of Credit Investigation Business” at the level of administrative regulations and department rules, which are the specific norms of the credit investigation industry.
The third is the “Personal Information Security Code” and “Personal Financial Information Protection Technical Code” at the level of the credit investigation industry standards, which are the operational guidelines for the credit investigation industry. China’s credit investigation industry has formed a multi-dimensional and multi-level system.
The subject has a wide range of application
Under the current framework of the credit investigation legal system, the regulatory objects of China’s credit investigation business have been extended from the traditional financial industry to individual credit investigation agencies, enterprise credit investigation agencies, government departments, credit information processing agencies, information providers, and information users in more fields, and all types of participants in the credit investigation business have been gradually included in the regulatory management, covering a wide range of applicable subjects. Effectively promote all parties involved in the credit investigation business to participate in the standard operation of the main body.
Post time: Nov-10-2023