Pilot Work on Industrial Credit Rating

Credit is the basis and symbol of market economy and an important content to set up modern market system and regulate market economic order. The Chinese government highly emphasize on pushing social credit system construction. To do this work well, it will help to raise the whole nation’s moral level, and to create a social atmosphere of mutual trust and mutual benefit; it will help to form an unified, open, competitive, orderly market system, and to speed up the flowing of goods and production factors; it will help to optimize the investment and trade environment, to prevent and reduce the transaction risks, to further opening-up and participate in international competition, thereby to promote the sustainable and healthy development of the national economy and social progress and civilization.
Industry chambers and associations take the important role in rectifying and regulating the market economic order, as well as promoting social credit system construction. In 2005, the National Office for the Rectification and Regulation of Market Economic Order (in 2008,the function assigned to the Ministry of Commerce of the People’s Republic of China, MOFCOM) and the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) jointly published “The Guidance on Chambers and Associations to Construct Industrial Credit” , which proposed to take the promotion of industry credit construction as the basic principle with chambers and associations as its main body. The Guidance pointed out six tasks: carrying out credit publicity and education; making regulations and oversee the implementation; using the credit information to serve enterprises; carrying out the training on credit knowledge; helping enterprises to build the internal credit risk management system; developing industry credit rating.
In 2006, the two departments issued "The Approach for Pilot Work on Industrial Credit Rating" to guide and regulate the industry credit rating.
Industry Credit System Construction with Chinese Characteristics

Industrial credit rating has created the path of industry credit system construction with Chinese characteristics. Guided and supervised by MOFCOM and SASAC, via a series process of voluntary declare, assessment, publish and review, according as related laws, regulations and rules, combining with the industry credit information and industry characteristics, taking the enterprises’ basic management, financial ability, competitiveness, performance of contract, law-abiding situation, and social responsibility into account, the industrial credit rating focuses on assessing the performance of trust management to make a comprehensive evaluation on enterprise's credit level.
Industrial credit rating has get support from massive chambers and associations, which has becoming an important work to develop industry self-principle and to serve membership. Up to July 31, 2009, 96 national chambers and associations have participate in the credit rating, According to the evaluation criteria and cooperated with the third-party credit service enterprises, we have evaluated 2,714 enterprises for AAA grade, 666 enterprises for AA grade and 117 enterprises for A grade, including the majority industries of machinery, electronics, petrochemicals, electricity, agriculture, water conservancy, construction, medicine, internal and overseas trade etc..

China Enterprise Confederation(CEC) as one Member Participating in Business Credit Rating

CEC is a non-profit and non-governmental national organization representing the enterprises, entrepreneurs and business groups operating in China. It so far has 290 group members, 4,500 direct members and 545,000 indirect business members. CEC participates on behalf of Chinese employers in the activities launched by the ILO, and became a formal member of the International Organization of Employers (IOE) in 2003. It is committed to complying with national laws and regulations to safeguard the legal rights and interests of enterprises and employers promote their self-discipline capacity and law-abiding practices and harmonize the relations and bridge the communications between enterprises and the government and society, between employers and employees, and among enterprises themselves. CEC had organized and participated in various technical aid projects, such as international labor standards, coordination of industrial relations, development of the organization of employers, the development of small and medium-sized enterprises, social security, environmental protection, occupational safety and sanitation, development of human resources, etc.