China: first network credit rating system officially launched

Wednesday 16 March 2011 11:07 CET | News

China’s first network credit evaluation system, dubbed Xinyongbao, has been officially launched, according to the online media outlet

The Xinyongbao system is set to regulate the online marketing of small and medium-sized enterprises. According to the Zhejiang Administration for Industry and Commerce, cited by the same source, the Xinyongbao system is able to monitor website qualifications, payment system details and product information. The system is based on the Certificate of Authority system and offers capabilities including assessing business qualifications and detecting illicit merchandise.

Via the Xinyongbao system, cybercitizens, clients and consumers are able to report fraudulent or other suspicious acts to the local administrations for industry and commerce.
Online sales in China generated USD 684 billion (CNY 4.5 trillion) in 2010, up 22 percent compared with 2009. In addition, the number of online shoppers reached 158 million in 2010, compared to 121 million in 2009, according to a report released by China e-Business Research Centre.

Nevertheless, internet fraud, phishing and internet pyramid schemes affect online consumers and socio-economic stability. The China Internet Network Information Centre received a total of 23,455 phishing reports and handled 22,573 phishing sites in 2010. Moreover, the China Internet Illegal Information Reporting Centre has reported almost 400,000 complaints in 2010, out of which 23.8 percent were related to online fraud. Other e-commerce retailers such as Alibaba and Netsun operate in the Zhejiang Province.

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Keywords: The Zhejiang Administration for Industry and Commerce, China, network credit rating system, e-commerce
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce