Twelve municipal departments Monday started using the government's new platform to track the credibility of companies and individuals, local media reported Tuesday.
The platform collects records on the behavior of companies and individuals in the city from government departments, the court system, transportation operators and city utilities, according to a report in the Oriental Morning Post.
It receives information from 41 government departments, such as the Shanghai Food and Drug Administration and the Shanghai Higher People's Court and eight utilities, said Yang Qinwei, a press officer for the Shanghai Municipal Commission of Economy and Informatization.
Government officials are able to access the records of companies that performed poorly carrying out contracts, and individuals who have fallen behind on their bills, according to a press release from the commission.
The government will consider the platform's records when granting contracts and allocating government spending, the press release said. Government departments at district and county levels will also have access to the platform.
From the end of this year, individuals and companies will be able to view their own records, but not those of others due to privacy concerns.
Qualified credit investigation and assessment enterprises will be able to use the platform in April 2014.
The platform will report on the credibility records regularly and put more emphasis on the supervision of enterprises in key sectors.
It will also help regulate the market by urging enterprises to comply with laws and regulations. It will also help improve the moral atmosphere in society, said Ren Yuan, a professor of the School of Social Development and Public Policy at Fudan University.
However, since the platform not only tracks illegal acts, but also immoral behavior such as fare dodging, Ren reminded authorities not to exaggerate a person's trivial faults and to protect individual privacy.
Ren also suggested that authorities could also keep track of the good behavior of individuals and companies.