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Business trends

China's social rating system 'life or death' matter for foreign businesses

European business group points to risk of blacklisting and exposure of sensitive data

China aims to use "social credit ratings" to promote better personal and corporate behavior.   © Reuters

SHANGHAI -- China's "social credit system" is causing alarm in the West as a major European business group warns that foreign companies could be targeted with sanctions and blacklisting under the controversial new framework.

The official purpose of Beijing's Corporate Social Credit System -- which rates companies based on their compliance with regulations -- is to enhance corporate governance and improve the overall operating environment in China.

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