How China’s Corporate Social Credit System Works

The video discusses the impact of new regulations on businesses, focusing on the Chinese economy's compliance and the introduction of a new business credit system. It highlights the uncertainties and costs associated with these changes, the ethical questions raised by personnel ratings, and the challenges of data transfers and supply chain audits. The video also evaluates the preparedness of European businesses, particularly German companies, for these new obligations.

What is one of the long-term benefits of the new Chinese business credit system?

• It reduces the need for audits.

• It decreases operational costs.

• It makes the Chinese economy more compliant.

• It eliminates all uncertainties.

How does the new business credit system differ from personal credit systems?

• It focuses solely on individual behavior.

• It uses artificial intelligence to organize compliance data.

• It is based on a single authority's decision.

• It does not affect interest rates.

What is a key feature of the new business credit system?

• It is optional for foreign companies.

• It is based on manual data entry.

• It relies on public opinion.

• It uses an algorithm-driven mark.

What ethical concern does the new system raise for European companies?

• It demands a change in their product lines.

• It mandates the screening of key personnel.

• It forces them to relocate their headquarters.

• It requires them to reduce their workforce.

What is a potential consequence for companies if their partners have issues under the new system?

• They will receive tax benefits.

• Their own rating may decrease.

• They will automatically gain a higher rating.

• They can ignore the partner's issues.

What challenge do European businesses face in preparing for the new system?

• They need to increase their compliance budgets.

• They are required to hire more local employees.

• They must close down non-compliant branches.

• They have to change their company names.

Which country has reportedly figured out the new business credit system according to the report?

• France

• Germany

• Italy

• Spain