The Social Credit System
Policing people is extremely difficult.
Of course, more extreme crimes are far and few between, and are normally handled on a case-by-case basis. But while we have laws against littering, loitering, jaywalking, and smoking near the entrance to buildings, the fact of the matter is that it’s near impossible to control the way people behave without centuries of cultural norms - or exceptionally harsh penalties for violations. Perhaps the most famous (and often outrageous) modern example of disproportionate response was the former president of The Philippines, Rodrigo Duterte, who told a crowd of 300,000 the night before he was elected in 2016, “You drug pushers, holdup men, and do-nothings, you better get out because I'll kill you.” before launching an anti-drug war that may have amounted to crimes against humanity due to its level of extrajudicial killings.
CCTV cameras overlook Tiananmen Square in Beijing, China. Source: NPR
The Chinese social credit system (SCS), which turns a decade old this year, has thankfully never killed anyone. But its presence in China’s vast society is powerful nonetheless.
China’s government published a document around the time of the SCS’ creation stating that “Accelerating the construction of a social credit system is an important basis for comprehensively implementing the scientific development view and building a harmonious Socialist society…and stimulating the development of society and the progress of civilization.”.
In theory, the system is simple: individuals performing actions deemed favourable by the government are rewarded with a higher score, while actions deemed negative towards society are given a lower score and penalised. This information is captured along a vast network of sources: CCTV cameras (of which an estimated 54% of the world’s supply exist in China) supported by facial recognition software and artificial intelligence, Internet algorithms, and more.
Although the exact methodology of the SCS is a secret held by the Communist Party, what is known is that it ranks individuals nationwide for a variety of offences - including ones as minor as bad driving, posting fake or anti-government content online, or smoking in areas where it isn’t allowed. Businesses in particular can also be subject to social credit scores for fraud, illegal fundraising, or debt evasion - MERICS actually identifies that most published SCS reports target companies, likely in a move to continue improving China’s economy and global perceptions thereof.
So what’s behind the scores themselves, which rank from 0 - 1300?
Mobile phone apps allow individuals to view their Social Credit score in real-time. Source: Morson Talent
Positive actions - like praising the government online, cleaning up litter, and donating blood - assign a high score to an individual that can result in faster Internet speeds, priority in healthcare, schooling, and better jobs. For businesses, which are particularly subject to the SCS system, this could mean fewer inspections and audits, better interest rates at banks, and even faster processing of tax returns. For individuals with a more rebellious nature participating in “disgraceful” actions, slower Internet speeds, public transportation bans, and even public shaming are all potential - if not certain - punishments.
The system, however, is not centralised - a somewhat unusual trend for the single-party state. Although the amount of data collected and processed by the system is colossal, it remains “disjointed” and non-standardised across provinces at this time.
While supporters of the system point out that it contributes to public safety and upholds laws, critics identify that the practice is invasive and too prone to mistakes. Whether the SCS continues to become more robust and centralised is likely, but uncertain. Given its vast capability to change an individual or business’ everyday life, however, it’s not likely to be something that vanishes any time soon.
TAI Score: Degree 2. A security crisis arising from the Chinese social credit system is extremely unlikely, and foreign nationals remaining excluded from the system greatly reduces individual risk. Nevertheless, business leaders and individuals should remain aware of its implications and existence - while non-Chinese citizens are not subject to its regulations, foreign businesses operating in China appear to be. This will become increasingly critical over time as the system centralises and becomes standardised nationwide.
