Horizons defines the China social credit system as "a broad regulatory framework intended to report on the ‘trustworthiness’ of individuals, corporations, and governmental entities across China." The term "social credit" is an intentionally broad and vague term that allows for maximal policy flexibility. The idea of social credit could be traced back to various schools of thought in the "warring states" period of Chinese history. For example, Confucius (551-479 BCE) called for a 'holistic' view of human nature in which individual well-being was related to good character and the proper functioning of society as a whole.
While China's social credit system isn't the world's first, it is definitely unique. Some suggest that the social credit system is not extremely different from citizen evaluations in other countries, even the United States. One of the biggest implications of a social credit system could include increased government control and a loss of privacy. By determining what services they can access, what jobs they can get and even where they can live, the government will have increased control over citizens' lives. With individuals data, including details regarding behavior and actions, being collected, there is an increased risk of a loss of privacy.
The goal of the China social credit system is to make it easier for individuals and professionals to make fully-informed business decisions. If a person has a higher social credit score, that is an indicator that the party is trustworthy in a business context. Although the system began with a focus on financial creditworthiness, the eventual goal of the system is to create a unified record for people, businesses, and the government, with the ability to be monitored in real time. In order for this to be achieved, society will need to use three practical mechanisms: Data gathering and sharing, curation of blacklists and redlists, and punishments, sanctions and rewards.
Through the credit system, data, the fundamental building block, is gathered by central, regional and municipal government bodies who collaborate to process that information into algorithms. Then, the data is used to place individuals and businesses to blacklists and redlists (some public, some not). Finally, based on the presence in the lists, citizens are punished, sanctioned or rewarded.
From a global perspective, there has been a major resistance to the social system from a global perspective, most Chinese citizens approve of the system. In fact, one peer-reviewed study showed 80% of participants either somewhat approved or strongly approved of social credit scores. Only 1% of participants reported either strong or some degree of disapproval in the system.
Any system in which individuals are given the power to monitor and control others could be abused. There is a high chance that a social credit system will be used to discriminate against particular groups of people, such as ethnic, political, or religious minorities.
The Hill claims that America's own social credit system is coming soon. The article states that PayPal has announced they will share information collected about "white supremacists" and other radical groups with financial firms and politicians. Theoretically, as a young person in the United States, I do not know how I would function if I got blocked from platforms such as Facebook, Venmo and Amazon.
To conclude, the Chinese social credit system is a complicated and complex legislative framework that tries to evaluate the integrity of individuals, corporations, and governmental entities throughout the country. While not unique, the system stands out for its size, complexity, and potential to violate citizens' privacy and personal freedoms. On the positive side, the system intends to produce a unified record for individuals, businesses, and the government which can be monitored in real time, making it easier for individuals and experts to make fully informed business decisions. Yet, there are fears that the system could be abused and used to discriminate against specific categories of individuals. It is important to ensure the system does not become abusive and will be positive if adapted into everyday life.
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