China’s response to online credit crisis

China’s response to online credit crisis


An authoritative and solid credit service platform through a full-range verification process is determined to be erected by China Internet Network Information Center (CNNIC). Online commerce sites are running across a number of problems when working with online customers. As per CNNIC statements incorrect online shopping behavior leads to more than CNY500 billion in economic losses in China yearly.Making allowance for this fact, it is highly urgent to create a credit system that responds to the online business features in China and is capable to efficiently guarantee online credit for promoting the information of enterprises and lowering the operation costs for enterprise websites.A seller credit program was already introduced this year under the cooperation between Alipay, one of China's largest independent and third-party payment platform and China Construction Bank. Alipay seller credit service is based on the credit of Taobao.com's users and their interactions with the Alipay service. CCB is the loan lending party, but all procedures of loan applications and returns will be done within a user's Alipay account. With this service, qualified sellers of Taobao.com will also get up to RMB100,000 individual small sum loans to solve their funding shortages
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