Clarity needed if China’s social credit system is to work
- There has been widespread confusion as to what exactly the nationwide model will entail; authorities have to ensure transparency and fairness
There are obvious benefits to the social credit system that Beijing is formulating and plans to roll out in coming years. But although the scheme has been broadly articulated and pilot projects are under way in a number of provinces, there is widespread confusion as to what it entails. The uncertainty has enabled foreign critics to misconstrue the idea as being about the government increasing control. Authorities need to better explain their vision and educate Chinese and those outside of its necessity and worth.
A planning outline issued by the State Council to devise a social credit system between 2014 and 2020 said it would focus on the areas of honesty in government affairs, commercial and social integrity, and judicial credibility. It is reward-and-penalty driven; those receiving high credit have access to benefits and priority for particular services, while those with low marks are denied or lose such opportunities. Although a national scheme is envisaged, pilot projects have taken different forms and directions, with no apparent standards. The various models being run by local and provincial governments have the same objective, but are often referred to by different names.
There are many similar schemes being operated by commercial enterprises, particularly those involved in e-commerce and e-payment systems, adding to the confusion. Few mainland Chinese have credit cards and banks have been loathe to lend to small- and medium-sized enterprises, being unable to trust those it cannot gauge the credit worthiness of. Blacklists are often used for those who have not paid fines or have violated laws and rules, particularly in areas of taxation, real estate, food safety and environmental protection. A social credit system would create certainty by restricting the activities of violators and rewarding those who comply.
The lack of details has opened space for rumours and misinformed criticism. There has been a particular focus on blacklists preventing those who have not paid fines or have overdue loans from boarding aircraft and high-speed trains, face-recognition software allowing the public shaming of traffic offenders on giant screens, and a points system giving credit or deductions that some contend impacts the ability to get good jobs, decent schools for children and loans for housing. It will take time to refine and implement a national scheme. Concerns have been raised that people living in cities, who generally have a higher income and better education than those in rural areas, will receive more incentives and benefits, creating inequality. There are also worries about the system being manipulated and privacy infringed upon. Authorities have to ensure transparency and fairness, but the immediate priority is ensuring greater clarity by providing education and better information.
