China will introduce a blacklist system to ensureimplementation of its policy on social insurancefunds, according to a draft by the Ministry ofHuman Resources and Social Security.
China's social insurance system consists of fivemandatory insurance plans -- pension fund, medical insurance, industrial injury insurance, unemployment insurance and maternityinsurance, as well as a housing provident fund.
According to the draft regulation, authorities will blacklist individuals or companies found tohave engaged in misconduct, such as failure to pay social insurance, social insurancefraud through forgery of certification materials, and illegally selling personal data related tosocial insurance.
Once placed on the social credit blacklist, individuals or companies will face restrictions on abroad range of activities, including transportation, bidding, applications for productionlicenses, financing loans, market access and tax incentives.
The blacklist will be effective for less than five years and be updated regularly.
Zhang Yinghua, a social insurance researcher at the Chinese Academy of Social Sciences, saidthe blacklist mechanism will help ensure fairness and justice.
Employers must realize that paying in full and on time is essential for protecting the rights andinterests of employees, and it is the social responsibility of enterprises, Zhang said.