“Critics of China’s social credit system say it is an Orwellian tool of social monitoring and political repression; but the Chinese government says it is a way of boosting administrative efficiency and encouraging trust and moral behaviour by its citizens.”

Since 2014, China has implemented the rollout of a Social Credit System which rewards citizens, businesses, and authorities for good behavior, while punishing the discredited ones. This classic “carrot-and-stick” approach is to be fully implemented by 2020. It is marginally similar to the financial credit systems, where credit ratings are given based on aggregated data on financial behaviors to determine how likely a prospective debtor is able to pay back a loan.

One differentiator is the means of data collection. The Chinese government uses advanced facial recognition technology, amongst other types of technology, to monitor the behaviors of the public round the clock. People are acutely aware that they are being surveillanced at all times, on the streets, and even digitally through their web and mobile activities.

The social credit system, however, also has far wider impact on one’s lifestyle than just the possibility of a bank rejecting a loan. An Australian journalist dived into the outcomes of individuals in this article. This article, accompanied by a 30 minute documentary, featured two extremes: those who benefit from the social credit system, and those who are punished for deviating from the standards.

Let us take a closer look at some of the consequences, and you may judge the nature of this system for yourself.

Promotion of the model citizen behavior

People are rewarded for good behavior and punished for bad behavior. The blacklisting mechanism ensures that those who do not comply with civil laws or pro-social norms will have a difficult time maintaining their usual lifestyle, even being curtailed of traveling. Jaywalking could lead to your name and face being broadcasted on a large billboard. Trustworthiness earned through good behaviors determined by the state can earn someone access to privileges to access services and amenities, in some cases for free, or with shorter waiting times.   

Improving the integrity of businesses and the political system?

Fraud, financial scams, and political corruption have been issues the Chinese government grapples with. In Rongcheng, one of the pilot cities where the system is rolled out, businesses can remain in good standing if they pay taxes on time, and avoid selling substandard products. High-scoring businesses get to pass through public tenders more efficiently, and better loan terms.

Shaping behavior of foreign businesses

Businesses and organisations operating in China are now identified through a business ID number, which tracks and reports transgressions to the National Enterprise Credit Information Publicity System. The authorities have pressured international airlines to comply with Beijing’s preferred terminology when referring to Taiwan and Hong Kong. Sanctions come in the form of fines if businesses do not comply, as retailer Muji has experienced for listing Taiwan as a country.  

In most of the Western media, the social credit system is dubbed ‘Orwellian’ and viewed as digital dictatorship. It remains to be seen if the Chinese society has found the silver bullet, using advanced technology to maintain societal order. Perhaps, a sacrifice of personal privacy and freedom is worth it, for the public safety, upholding of system integrity and social privileges it provides. On the other hand, it could also be a tool for political oppression of those who are deemed to threaten the state’s interest.

Questions for Personal Evaluation:

  1. Would you be concerned about having to conform to a set of behaviors prescribed by the government in order to live a desirable life?
  2. How justifiable is the State’s surveillance on its people?    

Useful vocabulary:

  1. ‘Partake’: to join in (an activity)
  2. ‘Tenet’: a principle or belief, especially one of the main principles of a religion or philosophy
  3. ‘Dissenters’: people who hold or express opinions that are at variance with those commonly or officially held

Here are more related articles for further reading:

NewStatesman: While many alluded the social credit system to a Black Mirror episode, ‘Nosedive’, it is not the same.

“And the key difference from the Nosedive scenario is that the implied threat isn’t the tyranny of the crowd. Your social credit score isn’t the result of other people judging you, but a representation of either state or corporate power. And this is certainly not a problem unique to China.”

The Atlantic: Our data has been collected and sold for commercial reasons a long time ago. We are only starting to realise it now.  

“The real difference between the old and the new ages of data-intelligence-driven consumer marketing, and the invasion of privacy they entail, is that lots of people are finally aware that it is taking place. The Cambridge Analytica scandal, the recent reports about Google, and related events have contributed to that knowledge, but not as much as the barrage of rapidly correlated advertising served in apps and on web pages.”

SCMP: The history of systems engineering as a pet subject of Chinese officials, and how it was inspired by a rocket scientist

“The field has resonated with Chinese President Xi Jinping, who in 2013 said that “comprehensively deepening reform is a complex systems engineering problem”. So important is the discipline to the Chinese Communist Party that cadres in its Central Party School in Beijing are required to study it.”

 

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