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For an individual, an enterprise and even a country or a nation, good faith is the foothold and principle of development. Without good faith, an individual, an enterprise and even a country or a nation will lose the space of survival and wither away if not otherwise perish. Social faith is one of the top 10 problems impacting China’s development in the two decades to come. In 2004 alone, a direct loss of 600 billion RMB to China has resulted due to faith-related problems and a direct loss of up to 200 billion RMB has resulted due to faith-related problems in product quality. Investigations revealed that more than 90% of the consumers do not trust the multifarious advertisements.
The general public is eager for enhanced good faith and the government authorities at all levels are looking for a solution to the problem of good faith as an extremely urgency. Information asymmetry and non-transparency have become a great encumbrance to China’s economic growth.
With the purposes of defending the rights and interests of enterprises purchasers and consumers with good faith, regulating the market and economic order, channeling off consumption and promoting the harmonious development of the society, China Testing Alliance (abbreviated as CTA) develops information verification of enterprises and products. CTA Information Verification System established in reference to the successful overseas experience is an effective solution to the problem of information asymmetry and good faith.
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