Opinion: The Economic Logic Behind China’s Credit Amnesty
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China has introduced a significant measure to overhaul personal credit. The People’s Bank of China (PBOC) recently issued a notice implementing a one-time credit repair policy. Under this new initiative, personal overdue records for single amounts not exceeding 10,000 yuan ($1,380) will be removed from the basic financial credit information database if the debt was incurred between Jan. 1, 2020 and Dec. 31, 2025 and the individual repays the overdue amount in full by Mar. 31, 2026.
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- China’s PBOC launched a one-time credit repair policy, erasing overdue records under 10,000 yuan from Jan. 1, 2020–Dec. 31, 2025, if fully repaid by Mar. 31, 2026.
- The policy is automatic, applies to all institutions, has no limit on overdue cases, and targets small, non-malicious debts.
- It aims to support honest debtors, enhance financial access, and boost market activity without forgiving debt.
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What Happened When
- 2016：
- The State Council issued guidance on establishing incentive and punishment systems, explicitly mentioning the creation of sound credit repair mechanisms.
- Between Jan. 1, 2020 and Dec. 31, 2025：
- Overdue records for personal debts not exceeding 10,000 yuan incurred during this period are eligible for removal if fully repaid by Mar. 31, 2026, under the PBOC's new one-time credit repair policy.
- 2025：
- The General Office of the Communist Party Central Committee and the General Office of the State Council referenced perfecting a unified credit repair system in their opinions on strengthening the social credit system.
- 2025：
- The General Office of the State Council issued an implementation plan to further perfect credit repair systems.
- 2025：
- The National Development and Reform Commission issued measures for credit repair management, with corresponding rollouts by the State Administration for Market Regulation and top judicial authorities.
- October 2025：
- Pan Gongsheng, governor of the PBOC, remarked on the necessity of a one-time personal credit relief policy.
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