Now foreign social software is better

Monitoring: Social scoring in China also for foreign companies

China's citizens have to endure it in some cities and regions. The state grades each individual in a point system - there is a deduction for everyone who does not pay their debts or taxes, for example, but also for those who do not visit their parents regularly or even express themselves critical of the regime that they take every step of the way controlled. If you have too few points, you have to expect sanctions.

Now this system is to be extended to companies, especially foreign ones that are active in China. The EU Chamber of Commerce in China believes that this could have profound effects on companies. In a recent study, she warns that very few companies have so far been prepared for what to expect.

It is the most comprehensive regulatory system that a government has ever introduced, says Jörg Wuttke, head of the Chamber of Commerce. And it goes even further, because it is quite conceivable that the new points system "can make the difference between life and death for individual companies," he says.

High score rewards

Specifically, data that various authorities in all parts of the country collect about companies are to be brought together in a huge database. And while it would easily take a decade to implement such a project in Germany - apart from all kinds of data protection concerns - this should happen in China by the end of next year. Then it should be possible to monitor and process all data in real time.

Specifically, this not only includes what has to be considered in this country, for example, in the context of a credit check. It should also be monitored whether the companies comply with all legal rules, from tax to social legislation, as well as, for example, the development of environmentally relevant emissions, which are to be monitored in real time. Video surveillance is also to be used more intensively for this purpose. In short: all relevant information on the behavior of a company is collected.