42,000 welshers barred from corporate roles in China

China had barred 42,000 welshers from taking positions with companies as of June amid efforts to promote good faith among businesses, the country's commerce regulator said on Friday.

Since December, Chinese courts have blacklisted people who are financially capable of serving their debt obligation but don't. They have been sharing that information nationwide on a disclosure website barring these people from becoming any companies' legal representative, board director or supervisor, among other positions.

Regulators are putting more efforts into scrutinizing companies' creditworthiness and will disclose the identity of welshers to make sure they pay a price for dishonest behavior, said Zhang Mao, head of the State Administration for Industry & Commerce.

The average number of daily visits to the website used for referencing businesses' and people's creditworthiness has surpassed 40 million, Zhang said. "The system is gaining influence and dishonest companies and people are feeling the pinch." Endi