China has issued a new framework to standardise how corporate creditworthiness is assessed, merging government-led public evaluations with market-based ratings while banning local authorities from using credit checks as protectionist tools.

The State Council published the implementation plan on March 29. It establishes a comprehensive evaluation system covering two tracks:

Public credit evaluation – conducted by government agencies on a non‑profit basis – reflects a company’s compliance with laws and regulations and primarily serves official oversight.

Market‑based credit evaluation – carried out by credit rating agencies, industry associations, and other third parties – focuses on default risk in commercial activities such as financing and business transactions.

The framework gives public evaluation a foundational role while pushing for its integration with market assessment. The ultimate goal is a unified national system.

Uniform Rules and a Ban on Local Practices

Public credit ratings will follow a standard A‑to‑D scale. Any numerical scoring must clearly map to these four tiers.

Crucially, the plan forbids local governments from designing their own industry credit rules without central approval. Where a central regulator has not issued unified industry standards, local authorities may not proceed on their own. Any local evaluation requires explicit approval from the relevant central body.

The document also bars local authorities from using credit assessments to impose hidden market entry barriers, engage in local protectionism, or interfere with business transactions. It states that no region may “reduce the public services that business entities are entitled to by law” or “obstruct the building of a unified national market”.

Transparency and Data Sharing

Public credit results will be published on the “Credit China” website and industry regulator portals. Companies can access their own ratings and authorise others to view them. The national credit information sharing platform will aggregate all public evaluation data and share it across departments as needed.

Easier Access to Credit for Small Firms

The framework encourages financial institutions to use public credit ratings in lending decisions, particularly for micro, small and medium‑sized enterprises. Banks are urged to lower collateral requirements for highly rated firms and expand unsecured credit.

Credit Repair and Appeals

Companies may apply for credit repair after the minimum disclosure period for negative information expires. A standard appeals process is available for disputes over both public and market‑based evaluations. Third‑party agencies are prohibited from charging extra fees for correcting information.

Enforcement Timeline

Central industry regulators must complete a nationwide review and clean up any unauthorised local credit evaluation schemes by the end of 2026.

The move is part of China's broader push to build a unified national market and phase out regional practices that fragment economic regulation.