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China Has Just Released a Draft National Social Credit Law

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On 14 November, several top Chinese government agencies collectively released a draft law on the Establishment of the Social Credit System, the first attempt to systematically codify past experiments on social credit and, theoretically, guide future implementation.

This law is formulated so as to improve the social credit system, innovate mechanisms for societal governance, optimise the business environment, standardise order in the Socialist market economy, raise the entire society’s awareness of creditworthiness, advocate the Core Socialist Values, and complete a credit reporting system that covers the entire society.

Law of the PRC on the Establishment of the Social Credit System (Draft Released for Solicitation of Public Comments), China Law Translate, 14 November 2022

The law largely follows local rules that Chinese cities like Shanghai have released and enforced in recent years on things like data collection and punishment methods – just giving them a stamp of central approval.

When the Chinese government talks about social credit, the term covers two different things: traditional financial creditworthiness and “social creditworthiness,” which draws data from a larger variety of sectors. The new draft law addresses the two types of creditworthiness with two different sets of rules.

Financial creditworthiness is a familiar concept in the West: it documents individuals’ or businesses’ financial history and predicts their ability to pay back future loans. Most Chinese policy documents refer to this type of credit with a specific word: zhengxin, which some scholars have translated to “credit reporting.” It is essentially the Chinese equivalent of Western credit bureaus’ scoring and is maintained by the country’s central bank. It records the financial history of 1.14 billion Chinese individuals, and gives them credit scores, as well as almost 100 million companies, though it doesn’t give them scores.

Social creditworthiness is what raises more eyebrows.


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Social Creditworthiness

Initially, back in 2014, the plan was to have a national system tracking all “social credit” ready by 2020. Now it’s almost 2023 and the legal framework for the system was just released in the November 2022 draft law.

Basically, the Chinese government is saying there needs to be a higher level of trust in society, and to nurture that trust, the government is fighting corruption, telecom scams, tax evasion, false advertising, academic plagiarism, product counterfeiting, pollution …almost everything.

The government seems to believe that all these problems are loosely tied to a lack of trust, and that building trust requires a one-size-fits-all solution. So just as financial credit scoring helps assess a person’s creditworthiness, it thinks, some form of “social credit” can help people assess others’ trustworthiness in other respects.

Individuals, companies, legal institutions and government agencies will be held accountable.

To date, the national government has built only a system focused on companies, not individuals, which aggregates data on corporate regulation compliance from different government agencies. But there is some data on people and other types of organisations the system, too.

However, there’s no central social credit score for individuals. The central government has given little guidance on how to build a social credit system that works in non-financial areas, even in the latest draft law, it has opened the door for cities and even small towns to experiment with their own solutions.

As a result, many local governments are introducing pilot programs that seek to define what social credit regulation looks like, and some have become very contentious.

The best example is Rongcheng, a small city with only half a million in population that has implemented probably the most famous social credit scoring system in the world. In 2013, the city started giving every resident a base personal credit score of 1,000 that can be influenced by their good and bad deeds. For example, in a 2016 rule that has since been overhauled, the city decided that “spreading harmful information on WeChat, forums, and blogs” meant subtracting 50 points, while “winning a national-level sports or cultural competition” meant adding 40 points. In one extreme case, one resident lost 950 points in the span of three weeks for repeatedly distributing letters online about a medical dispute.

But the guidance asks local governments to punish only behaviours that are already illegal under China’s current legislative system and not expand beyond that. And so, in Rongcheng’s case, the city had to later update its local regulation on social credit scores and allow residents to opt out of the scoring program; it also had to remove some controversial criteria for score changes.

How do we know those pilot programs won’t become official rules for the whole country?  The simple answer is, no one knows if they won’t.

How will a social credit system affect Chinese people’s everyday lives?

The idea is to be both a carrot and a stick. So, an individual or company with a good credit record in all regulatory areas should receive preferential treatment when dealing with the government – like being put on a priority list for subsidies. At the same time, individuals or companies with bad credit records will be punished by having their information publicly displayed, and they will be banned from participating in government procurement bids, consuming luxury goods, and leaving the country.

The government published a comprehensive list detailing the permissible punishment measures last year. The new draft law upholds a commitment that this list will be updated regularly.

The above is extracted from the article ‘China just announced a new social credit law. Here’s what it means’ published by MIT Technology Review.  Read the full article HERE

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vaboon
vaboon
11 days ago

coming to a town near you

A Person
A Person
Reply to  Bob - Enough
10 days ago

Quote from that page, “So this is about screening users and denying services if you don’t conform to the government’s rules. Just as in the Covid era, no vaccine no access.”

A bit ironic, considering that Public Health Scotland stopped providing weekly reports that showed the age standardised rate of death per 100,000 people for unpoisoned and poisoned early this year after the final 7 consecutive weeks each showed that the double poisoned had a higher death rate than the unpoisoned.

https://expose-news(dot)com/2022/02/18/phs-refuse-publish-covid-data-shows-fully-vaccinated-have-aids/

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11 days ago

[…] Go to Source Follow altnews.org on Telegram […]

Bob - Enough
Bob - Enough
11 days ago

I am buggered then (so to speak) !.

Islander
Islander
Reply to  Bob - Enough
11 days ago

Not very good phraseology methinks! Glad you said, “so to speak”!
Perhaps being “between a rock and a hard place” would be a little less graphic?

Bob - Enough
Bob - Enough
Reply to  Islander
11 days ago

OK, I  am buggered then, between a rock and a hard place.

YOU THINK THAT IS BETTER ?…

Islander
Islander
Reply to  Bob - Enough
11 days ago

This is getting quite unpleasant!?

Bob - Enough
Bob - Enough
Reply to  Islander
11 days ago

I was joking !, best I had at the time.

Not taking one for the team any more… wall – head – bang.

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10 days ago

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10 days ago

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ChinXinPin
ChinXinPin
5 days ago

Chinese Governments 2014 official launch of the Social Credit System
https://digichina.stanford.edu/work/planning-outline-for-the-construction-of-a-social-credit-system-2014-2020/

The Social Credit System in Chinese is a regulatory system not a specific set of technologies or a single surveillance network. Although, that is clearly stated as an objective by the Chinese authorities.

It is easy to check how the system is progressing by reading the National Development and Reform Commission (NDRC) own statements and reports. For example, last month they wrote:

“By building a nationwide social-credit network, China has been expanding the model of credit-based loans to better serve the real economy and facilitate private business financing, Zhang Chun, an official from the National Development and Reform Commission, the country’s top economic planner, said at a news briefing on Friday.”
https://en.ndrc.gov.cn/news/mediarusources/202109/t20210926_1297678.html

One of the main functions of the NDRC is to “take the lead in building a social credit system.”
https://en.ndrc.gov.cn/aboutndrc/mainfunctions/

The control of business activity is perfect for centralised economic planning and ultimately global governance. This is undoubtedly why the West, via ESG’s and sustainable development, are effectively copying the Chinese social credit system (which is being rolled out globally through the same mechanism), both for business and individuals. Recently concerns have been expressed about how China’s government intends to deploy AI to monitor this economic control grid:
https://www.scmp.com/economy/china-economy/article/3027674/china-pushing-ahead-controversial-corporate-social-credit

This is just the same as the Mark Carney’s threat that, unless businesses comply with the transition to sustainable development they “will go bankrupt.”
https://www.energylivenews.com/2019/08/01/mark-carney-businesses-that-fail-to-adapt-to-climate-change-will-go-bankrupt/

If you want to understand the impact of social credit on individuals, then the comments of one of the designers of the social credit system, Lin Jinyue, are also sourced in the article, if you want to hear what he has to say:
https://www.youtube.com/watch?v=3tWf9TOYIVw

China requires biometric data for use of things like smartphones and is both hoovering up data and using it to carry out surveillance and control its citizenry. The same is happening everywhere, simultaneously – 4IR is being implemented.

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