China company credit report: No trace left

China will no longer publicly report companies removed from the list of abnormal business relationships. The revised measures already took effect on 1 May 2025. The Ecovis experts explain what this means and who can apply for removal from the “blacklist” under the social credit system.

The State Administration for Market Regulation recently issued a notice regarding the implementation of the Measures for the Administration of the List of Enterprises with Abnormal Operations. According to the notice, once a business entity is removed from the abnormal operations list, the related information will no longer be publicly displayed – thus achieving a “no trace” policy after removal.

To date, China’s National Enterprise Credit Information Publicity System has stopped disclosing about 48.42 million entries concerning abnormal operations, affecting around 25.51 million market entities, including 5.02 million enterprises, 20.13 million individual businesses, and 362,400 farmers’ cooperatives.

China wants to strengthen confidence in the market

Upon approval of a removal application, public disclosure of the related listing will cease. This addresses business concerns, enhances credit restoration, fosters fairer conditions, and strengthens market confidence, supporting China’s economic recovery.

The abnormal operations list, part of China’s business “blacklist” system under the social credit regime, tracks relatively minor violations, mainly concerning incomplete or outdated business disclosures. It differs from more serious lists like the Seriously Illegal and Dishonest Entities List or the National Basic List of Punishment Measures for Dishonest Conduct.

Discuss with an expert what impact the tightened compliance and liability regulations have on your company.

Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany

How companies can be removed from the list

Businesses may apply for removal depending on the cause of listing:

1. Failure to submit annual reports: May be removed after submitting the overdue report
2. Failure to disclose enterprise information on time: May be removed after fulfilling disclosure duties
3. Failure to register a name change: May apply for removal after the name change is properly registered
4. Unable to contact via registered address: Can apply after updating the registered address or confirming reachable contact details

In each case, the local market authority will decide on removal within five working days of receiving the application or verifying the correction.

These changes make the system more balanced. While transparency remains a goal, companies that address minor infractions won’t face lasting reputational damage. This encourages timely compliance, while reducing the long-term burden on businesses, helping foster a healthier business environment.

However, it is important to consider, that compliance and liability regulations for companies have tightened and underwent (partially) significant changes under the new company law.

For further information please contact

Richard Hoffmann, Lawyer, ECOVIS Rechtsanwaltskanzlei Richard Hoffmann, Ladenburg, Germany
Email: richard.hoffmann@ecovis.com