Shaun Wu Analyzes China's Corporate Social Credit System with China Law and Practice
September 10, 2019
Publication: China Law & Practice
Shanghai-based Kobre & Kim lawyer Shaun Wu details the importance of non-Chinese companies’ corporate compliance as the country prepares to enforce its corporate social credit system in China Law and Practice. With experience handling China-based compliance and anti-bribery matters, Mr. Wu provides insights into the upcoming regulatory hot spot.
The corporate social credit system, which is expected to launch in 2020, will monitor all aspects of operations for companies within China and seek to shape their behavior through black-listings and joint punishments. “This is not a brand new thing the government is pushing out,” said Mr. Wu. “Rather it is a framework to help companies understand how different rules and regulations fit with each other.”
Many foreign companies are still unaware of the system and its wide reaching impact, but warnings from the EU Chamber of Commerce in China describe the new system as spelling “life or death” for MNCs with businesses in China. On the other hand, Shaun Wu sees the new system as an opportunity for foreign companies to take a more “localized approach” to compliance matters.