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Tuesday 13 November 2018

China's Social Credit System



Imagine, dear reader, that you live in a world where everyone of your actions (or inactions) is recorded and judged by your peers. From bad driving, smoking in a non-smoking area, and a failure to visit your parents/grandparents on a regular basis, all can have an effect on your ‘social rating’ and thus ‘social credit’. You may be thinking that these can be harmful to other members of society, but easily rectifiable. However, should one of these infractions prevent and individual from acquiring social services, transport (train and plane), prevent you from getting a job, access to the internet, and many more sanctions that will isolate an individual within modern society[1]. This reality is now being rolled out throughout China (for a more comprehensive list look at image 1). This step for China has implications for the world and the Global Economy.

Why does the CCP want a Social Credit System?

According to the CCP the Social Credit System will be implemented by 2020 with a focus of keeping trust which is ‘glorious’ and breaking trust in society as ‘disgraceful’.

The Chinese Communist Party’s (CCP) biggest fear is not being able to control it’s population, 1.4 billion at the time of writing, and thus lose control of the governance of the country. This eventuality has caused the CPC lead government to take drastic steps towards minorities within China[2]. Censorship and economic growth, has been the centrepiece of controlling the Chinese population, with a decline in economic growth (from as high a 10% almost a decade ago, to now 6.5%[3]) and censorship only being able to go so far (it cannot cover the entire population). ‘Self’ and ‘Social’ censorship has now become the order of the day and the future within Chinese Society.

To clarify this point, an example of this would be Uber. If you use Uber taxies to travel to a destination, the five star rating for both the customer and the driver can have an impact on whether 1) you as the customer gets picked up by the driver and 2) customers can scrutinise drivers rating and thus deprive them of work or on a more extreme not the driver could lose his job with Uber.

any rating system has its pros and cons but to have such a system throughout society severely limits what individual will do, thus restricting freedom. However, the CCP has taken this to the next level by placing the rating system, not in their own hands, but that of Chinese citizens therefore creating an level of control that will be unprecedented in human history. We as people judge others, its human nature, we cannot help but say ‘I don’t like what he/she is wearing or saying’ but with the ability to rate another individual can now have serious consequences for the lives of Chinese citizens (e.g. depriving an individual from social services). To take human nature and ‘weaponizes it’ in the way the CCP government is planning to do in China, not only extends the CCP’s control of Chinese Society but will ultimately have implications for those outside China.

How does the Social Credit System in China have implications for the rest of the world?

The first thing the pops into my mind is corporations (most notably Western corporations) would have to 1) adopt the practices of the social credit system in China and 2) prevent any western corporation from entering China (or seize the assets of those who are currently in China) if they do not comply with the Social Credit System. We have already seen this with the tech-giant Google, who recently announced they will be taking on the role of censor when operating in China[4] (in order for the search engine to have access to Chinese customers).

The second implication for the world could be a ‘trickle down’ affect that influences Western Corporations. Corporations could adopt similar methods in their home countries. For instance, Elon Musk plans to create a website that will ‘rate’ journalists[5], thus giving corporation and their owners greater influence in what we consume, read, and watch. This in my opinion is already the case and thus limits the individual to make rational choices in regards to there own utility and thus reducing the freedom of individual to have access to a plethora of consumer goods or media content (if the good or media content is classed as ‘untrustworthy’ it could be in danger of being taken out of circulation or removed from media sites). We should ask ourselves do we really need corporations to tell us what we want or what is best for us?

China’s Social Credit System has an Orwellian overtones to it, which has already started to become the norm for Western Corporations[6]





[1] The Independent, China ranks citizens with a social credit system - here's what you can do wrong and how you can be punished: https://www.independent.co.uk/life-style/gadgets-and-tech/china-social-credit-system-punishments-rewards-explained-a8297486.html
[2] The Geopolitics, Vatican and China Deal: Microcosm of Control: https://thegeopolitics.com/vatican-and-china-deal-a-microcosm-of-control/
[3] The World Bank, The World Bank in China: Overview: https://www.worldbank.org/en/country/china/overview#1
[4] Foreign Policy, Google is Handing the Future of the Internet to China: https://foreignpolicy.com/2018/09/10/google-is-handing-the-future-of-the-internet-to-china/
Silicon, Apple Removes Thousands of Apps from China App Store: https://www.silicon.co.uk/mobility/mobile-apps/apple-removes-apps-china-store-236141
[5] CNBC, Elon Musk may actually be making a website to rate journalists for credibility and ‘core trust’, https://www.cnbc.com/2018/05/25/elon-musk-may-actually-be-making-a-website-to-rate-journalists-for-credibility-and-core-truth.html
[6]  Verdict, Facebook rating score has echoes of China Social Credit System: https://www.verdict.co.uk/facebook-rating-score-china-social-credit/