Social Credit System

The Social Credit System is a proposed Chinese government initiative [1] [2] [3] for developing a national reputation system . It has been reported to assign to “social credit” rating to each citizen based on government data and their economic and social status. [4] [3] [5] [6] [7] It works as a mass monitoring tool and uses the big data analysis technology . [8] In addition, it is also meant to operate on the Chinese market. [9]

The Social Credit System is an example of China’s “top-level design” (顶层 设计) approach. It is coordinated by the Central Leading Small Group for Comprehensively Deepening Reforms . [9] According to the overall “Planning Outline for the Construction of a Social Credit System (2014-2020)” issued by the State Council, the Social Credit System will focus on four areas: “honesty in government affairs” (政务 诚信) , “commercial integrity” (商务 诚信), “societal integrity” (社会 诚信), and “judicial credibility” (司法 公 信). [10] Media coverage has thus far focused on the rating of individual citizens (which falls under “societal integrity”). HOWEVER,[9]

The Chinese government wants the basic structures of the Social Credit System to be in place by 2020. [10] The Chinese government has fast-tracked the implementation of the Social Credit System Resulting from the main plan was issued in 2014. If the Social Credit System is implemented, it will be a new way of controlling both the behavior of individuals and businesses. [9]

As of July 2017 , no comprehensive, nation-wide social credit system exists, and very little firm information is available here. [11] There are, however, multiple pilots testing the system on a specific level of industry. One such program has been implemented in Shanghai through its Honest Shanghai app, which uses facial recognition software to browse through government records, and rates users accordingly. [12] Some carry-have Stated que la ratings May use information Gathered from Chinese citizens’ online behavior, [1] goal scoring Existing systems run by private companies using Such data (Such As Sesame Credit ) are still in an experimental phase.[13]

The main plan

The hand of the outline is often mentioned in Western news outlet stories, the “State Council Briefing on Issuance of the Planning Outline for the Construction of a Social Credit System (2014-2020)”, was issued by China’s State Council on June 14, 2014. [ 10] [14] Rogier Creemers, a post-doctoral scholar at the Program for Comparative Media Law and Policy at the University of Oxford [15] , has posted a translation of the document. [10]

The goal of the initiative is “Raising awareness for the social security market”. [14] The Social Credit System is presented as an important means to the socialist market economy (完善 社会主义 市场 经济 体制 as 市场 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制 体制. 体制 体制 [14] This indicates that the Chinese government has an important role in regulating the economy and a tool for managing the behavior of citizens.

Among other things, the Social Credit System is meant to provide an answer to the problem of lack of trust on the Chinese market. Proponents argue that it will help eliminate problems such as food safety issues, cheating, and counterfeit goods. [16]

The Social Credit System will be limited to Mainland China and thus does not apply to Hong Kong and Macau . citation needed ] However, at present, the Chinese market is not the only one of its kind in the world. [9]

Social credit for businesses

For businesses, the Social Credit System is meant to serve as a market regulation mechanism. The goal is to establish a self-enforcing regulatory regime fueled by big data in which “self-restraint” (企业 自我 约束). The basic idea is that with a functional credit system in place, companies will comply with government policies and regulations to avoid having their scores lowered. [9] As currently envisioned, companies with good credit scores, and more investment opportunities. Companies with bad credit scores will likely face unfavorable conditions for new loans, higher tax rates, investment restrictions, and lower chances to participate in publicly funded projects.[9] Government plans also envision real-time monitoring of a business’s activities. In that case, offenses on the part of a business could result in a lowered score almost instantly. However, this will actually occur on the future implementation of the system as well as the availability of this type of monitoring. [9]

Involvement of private companies

As of March 2017, 137 commercial credit reporting companies are active on the Chinese market. [9] As part of the development of the Social Credit System, the Chinese government has been monitoring the progress of third-party Chinese credit rating systems. [5] In 2015, eight people were picked up by the People’s Bank of China to develop credit ratings, including Alibaba’s Ant Financial Services, which operates Sesame Credit . [17] [18] However, the Chinese government has decided to make new licenses in 2017, citing concerns over conflicts of interest and rival platforms. [17]

Private companies have also signed contracts with the provincial government to set the basic infrastructure for the Social Credit System at the provincial level. [19]

Social credit systems in popular culture

The episode Nosedive of the Black Mirror TV series explores some of the negative implications of a system like the Social Credit System, as did the episode ” App Development and Condiments ” of Community . quote needed ]

See also

  • Credit score
  • dang’an
  • Mass surveillance in China
  • Reputation system

References

  1. ^ Jump up to:b “China rats icts own citoyens – Including online behavior” . www.volkskrant.nl . April 25, 2015 . Retrieved 2015-12-26 .
  2. Jump up^ “SAT Boosted the Construction of Credit System and Practical Reward and Punishment Based on” Two Measures “: Honest Taxpayer on Honor List and Illegal Taxpayers on Blacklist” . www.chinatax.gov.cn . General Office of the State Administration of Taxation. July 8, 2014 . Retrieved 2015-12-26 .
  3. ^ Jump up to:b “China Outlines icts first social credit system” . news.xinhuanet.com . 2014-06-27 . Retrieved 2015-12-26 .
  4. Jump up^ Hatton, Celia (2015-10-26). “China ‘social credit’: Beijing sets up huge system” . BBC News . Retrieved 2017-03-06 .
  5. ^ Jump up to:b Hatton, Celia. “China ‘social credit’: Beijing sets up huge system” . BBC News . Retrieved 2015-12-23 .
  6. Jump up^ Chin, Josh; Wong, Gillian (2016-11-28). “China’s New Tool for Social Control: A Credit Rating for Everything” . Wall Street Journal . ISSN  0099-9660 . Retrieved 2017-03-06 .
  7. Jump up^ “China’s plan to organize its society on ‘big data’ to rate everyone . Washington Post . Retrieved 2017-03-06 .
  8. Jump up^ Botsman, Rachel. “Big data meets Big Brother as China moves to miss its citizens” . Wired UK . Retrieved 26 October 2017 .
  9. ^ Jump up to:i Meissner, Mirjam (May 24, 2017). “China’s Social Credit System: A big-data-enabled approach to market regulation in China”(PDF) . www.merics.org . Retrieved July 11, 2017 .
  10. ^ Jump up to:d 2015-04-25, 2014-06-14. “Planning Outline for the Construction of a Social Credit System (2014-2020)” . chinacopyrightandmedia.wordpress.com . Retrieved 2016-01-08 .
  11. Jump up^ Hsu, Sara (May 10, 2015). “China’s New Social Credit System” . The Diplomat . Retrieved 2015-12-26 .
  12. Jump up^ “What’s Your Public Credit Score?” The Shanghai Government Can Tell You ” . NPR.org . Retrieved 2017-09-16 .
  13. Jump up^ Ahmed, Shazeda (January 24, 2017). ” ” Cashless Society Cached Data Security Considerations for a Chinese Social Credit System ” .Www.citizenlab.ca . Retrieved July 13, 2017 .
  14. ^ Jump up to:c “国务院 关于 印发 社会 体系 体系 体系 规划 规划 纲要 (2014-2020 年) 的 通知” . www.gov.cn . 2014-06-27 . Retrieved 2017-07-14 .
  15. Jump up^ “China Copyright and Media, About” . chinacopyrightandmedia.wordpress.com . Retrieved 2016-01-08 .
  16. Jump up^ “Big Brother is watching: how is China’s compiling computer ratings on all its citizens” . South China Morning Post . 2015-11-24 . Retrieved 2017-07-14 .
  17. ^ Jump up to:b Hornby, Lucy. “China changes tack on ‘social credit’ scheme plan . Financial Times . 2017-07-05 . Retrieved 2017-07-14 .
  18. Jump up^ “人民 银行 印发” 关于 做好 个人 征信 业务 准备 工作 工作 工作 工作 工作 工作 工作 工作 工作 工作 “” ” . www.gov.cn . 2015-01-05 . Retrieved 2017-07-18 .
  19. Jump up^ “联合 信用 助力 新疆 社会 信用 体系 建设 建设” . 2016-12-09 . Retrieved 2017-07-14 .