Foreign businesses in China are ill-prepared for the tough sanctions and constant surveillance demanded by a social credit system to be rolled out this year, a European business group warned Wednesday.
Under this new system for ranking businesses, both foreign and domestic companies will be required to install surveillance cameras in their premises and share the data with the Government.
Those who violate rules will be placed in “blacklists” and subjected to “immediate and severe punishments”, the EU Chamber of Commerce in China said in a report published Wednesday.
The sanctions are not limited to penalties but also include more frequent inspections, customs delays, not getting subsidies or tax rebates and public shaming, the report added.