China will introduce a blacklist system to ensure implementation of its policy on social insurance funds, according to a draft by the Ministry of Human Resources and Social Security.
China′s social insurance system consists of five mandatory insurance plans -- pension fund, medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, as well as a housing provident fund.
According to the draft regulation, authorities will blacklist individuals or companies found to have engaged in misconduct, such as failure to pay social insurance, social insurance fraud through forgery of certification materials, and illegally selling personal data related to social insurance.
Once placed on the social credit blacklist, individuals or companies will face restrictions on a broad range of activities, including transportation, bidding, applications for production licenses, 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, said the blacklist mechanism will help ensure fairness and justice.
Employers must realize that paying in full and on time is essential for protecting the rights and interests of employees, and it is the social responsibility of enterprises, Zhang said.