An Overview of Social Credit Ratings in China

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China has emerged as one of the most technologically advanced countries, far ahead of its contemporaries. Upholding its status, China has combined technology and crime in order to ensure that the country continues to flourish.

As a matter of fact, the Chinese Government rolled out its plan on Beijing Municipal Corporation’s official website in July 2018, which shall be fully implemented by the year 2020. This plan is designed to classify the reliability of its citizens depending on their credit repayment history and overall behaviour. It aims at optimizing the Business Environment and rewarding the good citizens.

How Does the System Work?

Citizens begin with a score of 1000 points each, and this either goes up or drops down depending on the individual’s behaviour. For instance, if a Court has a reason to believe that a certain individual can pay back his debts, but he refuses to do so, such an individual gets blacklisted. Other reasons for a drop in the score could be a violation of traffic rules, quarrelling with neighbours etc…

If positive, this score earns several perks such as discounts, special invites to events and much more. Likewise, the ones that are blacklisted will be penalized for it in their day to day lives, and won’t have access to luxury products or services. So, they won’t be able to buy Hi-Speed Train Tickets, bookings in luxury hotels, or travel abroad.

Judicial value

Unlike other countries, China would end up spending less Taxpayers’ money towards adjudicating DUI (Driving Under Influence), bad credit cases and other issues. Plus, the system is based on the principle of ‘positive discrimination’, which is permitted under Human Rights and can work wonders, if implemented sincerely.

At the same time, these scores remain susceptible to the threats of the IT world. There is practically nothing in the virtual world, which is 100 percent secure.

While the Western Nations are striving hard to safeguard their data privacy laws and evolve newer ones, the Chinese Government thinks otherwise. Instead of combating the issue of privacy invasion, the Chinese Government is working towards a surveillance system that would reward its “good citizens” and penalize the ones it considers “bad”.

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