Three major regions in China have decided to step up their game in implementing relevant reforms within their credit systems. Beijing and Tianjin are set to follow suit after Hebei province introduced a debtor map that aims to encourage social debt responsibility.
According to China Daily, Tianjin and Beijing are mulling the possibility of releasing their own delinquent debtor's map as a program on WeChat to help encourage Chinese citizens to be more responsible.
The new credit system goes beyond just tracking down delinquent debtors are encouraging social responsibility. Director of the social credit system construction department at the Beijing Municipal Bureau of Economy and Information Technology, Zhang Yuhang, said there's more to the credit system.
Deadbeat debtors will also have other violations listed on the system. These include even what others deem as a small issue such as traffic violations.
The goal is to further push citizens to be responsible in making decisions that could affect their lives in the near future.
Deputy Director of the Bureau of Economy and Information Technology, Pan Feng, noted that the Beijing-Tianjin-Hebei credit system is expected to create a ripple effect on the Chinese society as it gradually encourages delinquents to have a greater sense of responsibility in their lives.
Over the weekend, an official from the National Development Reform Commission (NDRC) reportedly said a bankruptcy system for individual debtors could help prevent increased debt risks in China.
Beijing has yet to officially confirm if a bankruptcy system is being developed but experts indicated that such systems will help honest citizens who got into debt outside of illegal activities get back up and redeem themselves.
For Xue Kepeng, professor at the China University of Political Science and Law, said it will take a lot of time and consideration before such a system is mulled by lawmakers. There could be risks that come with it if it is not established properly, Xue noted.
Among the risks Xue mentioned is the possibility that some people with debt will intentionally move their monetary assets during tight situations and later file for bankruptcy as a means of avoiding debt.
The official reportedly explained that a bankruptcy system aimed to help honest citizens rebuild their lives will be established on essential factors that will block anyone who tries to take advantage of the regulations.
The Chinese government has been encouraging its citizens to be more socially aware and responsible in their daily dealings. For Beijing, a society that seeks to benefit everyone and not take advantage of regulations is necessary for achieving economic and societal goals.
