Special Report: Understanding China’s Social Credit System

Publication date: September 23, 2019 socialcredit.triviumchina.com 1

Read it online at: socialcredit.triviumchina.com/what-is-social-credit citizens, businesses and governmentcitizens, businesses A big-picture look at social credit as it applies to as it applies look at social credit A big-picture Credit System Understanding China’s Social China’s Understanding [ TRIVIUM PRIMER ] [ TRIVIUM PRIMER Table of Contents

Getting started Section 5.0 Intro Big tech 43 Exec summary 3 5.1 Tech platforms and social credit 44 Introduction: Meet the SCS 4 What social credit isn’t 5 Section 6.0 Analysis 47 Section 1.0 Social credit: the big picture 7 1.1 Thinking behind the SCS 8 Credits Sources & Experts 1.2 The master database 9 1.3 The blacklisting system 12 Key experts 53 1.4 Rewards and punishments 17 Trivium research team 54 1.5 More on the SCS for companies 21 Sources 55

Section 2.0 Citizen social credit 23 2.1 The SCS in daily life 24 2.2 Adoption and public opinion 33

Section 3.0 Financial applications 35 3.1 Financial credit 36

Section 4.0 Political applications 38 4.1 Social credit and internal affairs 39 4.2 Collecting data on government 40 4.3 Rewards and punishments for 42 government Special Report: Understanding China’s Social Credit System regulations apply to them apply regulations processes vetting Determining which social credit social which Determining vendor HR and Reassessing advantages Looking for Citizens can be blacklisted for failing to Citizens can be blacklisted for failing to The central government is also using The SCS has a secondary use: a secondary use: The SCS has is no such thing as a national There data on citizens is Social credit departments in each person’s city of departments in each person’s The local police, courts, tax residence. office, health and affairs citizen bureau, and many other family planning bureau, on local residents bodies submit records to the master database. These records social included in each citizen’s then are file. credit judgments, comply with court-ordered behaving badly on planes and trains, engaging in fraud, and other violations. publicly named Blacklisted citizens are and shamed. lower system to ensure the social credit compliant with levels of government are paying their bills, are national directives, meeting their policy targets. and are incentivizing good financial and civic incentivizing good financial behavior among citizens. for individuals. The score social credit issue credit central government doesn’t keep a master It does, however, scores. to files, credit database of personal agencies, banks, and which various state given access. are other groups by the government primarily gathered • • • • • • • • records Not getting hung up on scores on credit a close eye Keeping managing credit data Actively Companies should prepare by: Companies should prepare Companies that have an exemplary Companies that have records, social credit A company’s of a company is The social credit personal credit, this may impact the personal credit, success in government company’s bidding. procurement several dozen other bodies. several dozen other will be “redlisted”. records credit by one state Companies redlisted by all state agency will be rewarded taxes, include lower agencies. Rewards procedures, fast-tracked bureaucratic consideration during preferential and bidding, government procurement other perks. including blacklist and redlist information, qualifications and permits, inspection and safety / production openly published on a new are results, website, called the National Enterprise Information Publicity System. Credit of to the personal credit tied directly its key personnel. If a company violates of the personal credit regulations, senior management may be affected. if key personnel have poor Conversely, and restrictions by all state agencies. agencies. by all state and restrictions violate companies that For example, subsequently laws and are import-export penalized by Customs will be blacklisted the banks, environmental by the courts, and regulators, market regulators, • • • • • • • 3 (especially migrant workers) (especially migrant energy consumption / excess safety Fraudulent financial activity Fraudulent evasion Tax offenses Import-export laws Violations of cyberspace Violations of environmental laws Endangering public health and Under the “Unified Rewards and Under the “Unified Rewards The blacklisting system is complicated. The blacklisting system is complicated. blacklisted by one state agency means being subject to punishments controlled by different state agencies. state by different controlled Each agency has the power to blacklist companies and individuals that fall under their own jurisdiction. For example, the can Ministry of Ecology and Environment blacklist companies for environmental violations. The Cyberspace Affairs Commission can blacklist companies for The tax violations of cyberspace law. blacklist tax evaders. can bureau Punishments” framework, being There are hundreds of different blacklists of different hundreds are There • • • • • • • •

Not honoring legal obligations employees pay to Failing

The key violations that result in The key violations that result Companies and their legal The master database is called the It consists of three main components: a It consists of three China’s social credit system is primarily a system credit social China’s blacklisting are: operational regulations. operational regulations. representatives, as well as individual representatives, citizens, can be blacklisted for severely violating any number of existing About 75% of the data in this database About 75% of the data in this database will be open to the public. Platform. It’s controlled by the central controlled Platform. It’s of hundreds government, and it stores datasets on companies and individuals. National Credit Information Sharing National Credit master database, a blacklisting system, master database, a blacklisting system, and a mechanism for punishing bad credit. good rewarding and credit tool for regulating corporate behavior in corporate behavior tool for regulating the Chinese market. • •

No time? No problem. We’ve distilled this report down this report down distilled problem. We’ve No time? No critical takeaways. to a few Executive summary Executive THE QUICK VERSION THE QUICK • • • • • INTRO: THE SOCIAL CREDIT SYSTEM CREDIT THE SOCIAL INTRO: Special Report: Understanding China’s Social Credit System MORE ON PAGE 9 MORE ON PAGE Blacklists (for bad behavior) and redlists (for good Blacklists and redlists (for bad behavior) to behavior) add an extra layer of enforcement existing laws and regulations. 12 MORE ON PAGE and punishments Rewards to penalize those Government bodies forces join those with and reward records, with bad credit records. good credit 17 MORE ON PAGE The master database The master The national database consolidates social and facilitates data sharing between data credit government agencies. The blacklisting system 4 A master database The blacklisting system A punishment and rewards mechanism goal, the government needs data. Lots and lots of data. of three interconnected components: interconnected of three 1. 2. 3. The central government hopes to use these components in tandem to guide China three its next phase of development. Of through to achieve such a sweeping course, in order (both for domestic companies and foreign (both for domestic and foreign companies companies doing business in China), second as a mechanism for evaluating the both of individuals from “creditworthiness” a financial and behavioral perspective, and over the for solidifying Party control third State. The SCS, which is slated to be fully operational by the end of 2020, is made up , and itself. businesses ,

government

citizens

system (SCS). system announcing the establishment the establishment announcing credit social of a national released a landmark policy policy landmark a released [INTRO: MEET THE SCS] THE MEET [INTRO: Council State China’s In 2014, tool for controlling corporate behavior tool for controlling As we’ll see over the following pages, the as a first and foremost SCS was created While that’s a valid worry, it’s also a skewed it’s a valid worry, While that’s of what the SCS is and incomplete picture designed to do. Many have voiced concern about the potential to evolve into an system’s Orwellian panopticon of social control. targets: targets: the Chinese the system isn’t just directed at just directed the isn’t system individuals, but rather has three distinct and equally-important behavior. While the international behavior. community is fixated on the SCS to citizens, in actuality, as it relates “promote the traditional value of “promote the negative integrity” and increase consequences of dishonest The initiative was designed to INTRO: THE SOCIAL CREDIT SYSTEM CREDIT THE SOCIAL INTRO: Special Report: Understanding China’s Social Credit System section .

Private social credit systems Private variety of scores, both to individuals and to variety of scores, companies, primarily for lending purposes. MYTH 2 There’s only one social credit system The second pervasive myth going only one social that is there’s around are system in China. There credit systems, actually many social credit and those fall into two main categories: 1. 2. Corporate credit grades credit 2. Corporate willCompanies of scores also get a series data. thebased on central government’s state will issued by credit be These scores industry associations,agencies, the and will rate the government itself. These scores legal compliance, quality, service company’s social responsibility. and level of corporate about this in our more can read You on the SCS for enterprises scores 3. Financial credit Banks will also be incorporating some social records. into their data credit financial credit will be those records In the near future, rating agencies to issue a used by credit section on citizen social . But as of September 2019, what’s . But as of September 2019, what’s eventually system, and have a scoring if those systems will eventually be cover all this nationwide. We standardized in our detail in more credit their important for Chinese citizens isn’t but the contents of their score, city credit file. national credit locally. these running Not all cities are in China matters And to make scoring programs. confusing, in the places that do have more widely scales differ scoring systems, scoring Some cities rate on a 0-200 city to city. from no scale, so there’s scale, some on a 0-1000 can’t and scores unified scoring mechanism, between people from compared be really localities. different in the “Black Mirror” a wrench This throws scenario in which everyone in China judges human worth a point based on each other’s value. If a citizen has a credit of Suzhou 175, that of would be considered score under the system; but local excellent credit under the system, 175 would be Hangzhou the So, unless horrible credit. considered national decides to start issuing government – and at this point, there’s unified scores going to happen – that little indication that’s come to fruition. won’t particular nightmare to be seen if every city will It remains 1. Citizen credit scores credit 1. Citizen independently governments are A few city that use the central piloting programs to give city residents database social credit only applicable that’s score a social credit 5 (yet). based on social credit data. based on social credit There are, however, national social credit national social credit however, are, There which the central on everybody, records government maintains in a master database. Though the contains lots of database issue scores. information, it doesn’t That being said, scoring is happening in because many different some places. That’s using thegovernment’s central entities are to test out and records social credit implement theirscoring systems. There own main types of scoring systems three are But there’s one big problem with this story: one big problem But there’s is no national scoring system there right: the has not central government That’s to anyone. score issued a single social credit

actually is, we’re going to take a minute to clear the air. a minute to clear going to take actually is, we’re repeated so often that they’ve been widely accepted been often that they’ve repeated so credit talk about what social we as fact. So before rise to two fundamental misunderstandings about misunderstandings fundamental rise to two been have These it works. is and how what the system There’s a whole lot of misinformation floating around lot of misinformation There’s a whole has given credit, and that misinformation about social What social credit isn’t social credit What BEFORE WE GET STARTED... BEFORE scores fall to a certain number are fall to a certain number are scores ostracized or blacklisted. social credit score by the central score social credit government, and this dictates Those whose theirplace in society. Typical story goes like this: Chinese Typical all issued a numerical citizens are has a social credit has a social credit score Everyone in China Everyone MYTH 1 INTRO: THE SOCIAL CREDIT SYSTEM CREDIT THE SOCIAL INTRO: Special Report: Understanding China’s Social Credit System There are only rewards for good credit only rewards are There Private SCS Private companies Run by private operational already Dozens are users to customers and Assigns scores can take your like it, you Optional: if you don’t business elsewhere customers or users are Only the company’s rated 6 Running, but not at full speed yet, still in Running, but not at pilot mode pre-beta system – no one has No nationwide scoring score social credit been assigned a national (yet) must participate Non-optional: everyone Includes files on people, companies, and government organizations, departments and penalties for bad credit are There for good credit rewards The national SCS Chinese governmentRun by the Participation Targets Punishments & rewards Who runs it Who runs Implementation status Scoring systems section . The national social credit social national The system on tech platforms the nationwide public social credit system, the nationwide public social credit we do include a interested, but if you’re little SCS in our info about private credit record, whether they like it or not. record, credit will focus almost exclusively on This report and civic acts. There are penalties for poor are and civic acts. There the And for good credit. and rewards credit optional: everyone will have a system isn’t of credit files on people, companies, and of credit files include both Credit organizations. repayment history, financial data, like debt and behavioral data, like court records the national end of 2020.The SCS is not so much a nationwide scoring system as it is a ginormous, centralized database something else entirely. It’s run by the It’s something else entirely. fully operational yet, government. It isn’t launch at supposed to officially and it’s consumer’s behavior. consumer’s system is The nationalcredit social optional: if you don’t want to participate, optional: if you don’t have to. These private systems you don’t because classified as “social” credit are they base some of their scoring on the company’s customers, rewarding high rewarding customers, company’s are with perks and discounts. There scores also They’re no penalties for low scores. them currently operating in China. These them currently kind of like loyalty rewards systems are to the they assign scores programs: Private social credit systems are run by systems are Private social credit dozens of are There private companies. These two thingsThese two all get mixed up the time, actuallysuper different. but they’re 2. INTRO: THE SOCIAL CREDIT SYSTEM CREDIT THE SOCIAL INTRO:

Special Report: Understanding China’s Social Credit System 7

The big picture The big Social Credit: Social 1 Special Report: Understanding China’s Social Credit System A master database The blacklisting system A punishment and rewards mechanism “There’s no path forward for path forward no “There’s their don’t keep those who word.” to harness technology to effect that to harness technology to effect solution. the As we touched on in the introduction, system is comprised of three social credit components: interconnected 1. 2. 3. Over the sections, next several we’ll dig into thosein depth, components and outline how they all fit together. We’re paraphrasing here, but basically, he but basically, here, paraphrasing We’re say thatgoes on to untrustworthy societies markets and corrupt give rise to unstable governments functiongovernments, corrupt distrust, more and breed inefficiently social harmony, unstable markets undermine cycle. Since allon and on in a vicious interconnected these of factors are three Chinese each other, and must influence believe they must be like Wu researchers tackled with a common, holistic solution. And that, in essence, is how Chinese policymakersconceptualized have the system: as an attempt national social credit 人 In it, 2 ). 大国信用 ”, or: And a person’s willingness to fulfill their And a person’s from be divorced financial obligations can’t their willingness to fulfill their personal obligations. Likewise, the trustworthiness from be divorced of an individual can’t the trustworthiness of society as a whole. quotes a whole lot of Confucius in the Wu course of explaining all this, specifically: “ 而不信，不知其可也 data on companies and individuals,data on companies and by a rewards which would be underpinned to enforce and punishments mechanism accountability. as to say about credit Though Lin had a lot so much to individuals, he wasn’t it relates civic “uprightness” as focused on moral and thehe was on honesty as underpinning of Interestingly a healthy market environment. enough, the SCS as it exists today is almost almost 20 identical to the one Lin proposed years ago. a key member of a think Weihai, In 2017, Wu with (thethe NDRC state tank affiliated for the implementation ministry responsible a white paper called of the SCS), released Nation” ( of a Great “Credit down the central government’s he breaks and dives deep thinking on social credit, the system’s that inspired into the reasoning construction. stresses him, Wu Like Lin Junyue before made up of individuals. that markets are solve through the creation of a nationwide the creation through solve credit on Western system modeled credit and but expanded frameworks, reporting adjustedfor the He Chinese context. a data-driven platformsuggested which would collect financial and behavioral 8 , 1 State, lamented the lack of “integrity” in to the marketplace, an issue he proposed Many of these problems persist today, and persist today, Many of these problems plugged in to as China has increasingly these trust issues, as the global economy, corporate debt, well as issues surrounding have consistently and accountability, credit, stumbling blocks that policymakers created of the believe the have stunted growth socialist market economy. In his seminal 1999 paper on social credit, to sociologist Lin Junyue, who returned China after studying data collection at Penn of the Cultural Revolution, the effects of a of the Cultural Revolution, the effects weak legal system, and rampant corruption decimated public faith in the rule of law.

since the late 90s, with the release of a seminal paper since the late 90s, with Sciences. of Social from the Chinese Academy the concept of social credit has actually been bouncing of social credit has actually the concept government echelons of the Chinese around the top Though the landmark policy that kicked off the off the that kicked landmark policy Though the in 2014 released of the national SCS was construction SCS The thinking behind the behind The thinking SECTION 1.1 SECTION was in equally poor straits. The ravages other with suspicion. between the and the people state Trust this led to a low-trust environment this to a low-trust environment led and in which consumers, businesses, each other market actors treated general disregard for contractual for contractual general disregard All of terms and legal agreements. shift gave rise to widespread fraud, shift gave rise to widespread patent and copyright infringement, consumer safety scandals, and a just begun to open up and integrate and up open to begun just into international markets. The pains of this massive social growing At the time, China had only really At the time, China had only really 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System The NCISP will collect 4 全国信用信息共享平 NCISP is controlled by the NCISP is controlled 3 (NCISP). The NCISP already contains a staggering The NCISP already amount of information, submitted by city governments, state agencies, and provincial a national and the There’s central bank. committee departments that of government participating in the As of SCS buildout. are 46 government are August 1, 2019, there agencies on the committee, many of whom we know will add their data sets to the files. master credit agencies on a national level, and info from and provincial- it will from also suck up data city-level government departments. Government documents lay out in great the central detail exactly which records database will which government contain, agency will which datasets, as contribute will be open to the well as which records public and which won’t. where everyone who needs access to the access who needs everyone where information can get it. is what the current That, essentially, a system is: incarnation of the social credit to get allmassive push existing flowing data into one database. created. been That database has already Information called the National Credit It’s Sharing Platform, 台 the primary and it’s central government, files on credit clearinghouse for social individuals and corporations. The National Credit Information Sharing Platform Market Financial regulators regulators Courts Environmental Environmental regulators Or perhaps shady Travel Agent X bounces Agent Or perhaps shady Travel dangerous selling shoddy, city to city, from tickets,tours and counterfeit but has only travel by local ever been reprimanded court. Without and never taken to bureaus, all too of the violations, it’s a central record easy for this person to continue running scams. point of the Chinese government’s So from regulating market the the first step of view, (and the individuals within it) is to get all this data collected in one central place is often irresponsible with money budget irresponsible is often this but meet its policy targets, and doesn’t or information records, gets lost in a sea of corruptionhidden by and nepotism, and pinpoint the the government can’t central of local woes. source Customs 9 affairs Transport Transport authorities Civil / social Other agencies Cyberspace administration

inspection records, traffic violation records, police inspection records, traffic on and on. reports, court records, and Thing is, the government already has lots of data. It has has lots of data. It already government Thing is, the records, safety financial records, tax identity records, In order to realize its ambitious plans for market for market its ambitious plans In order to realize lots of data. needs Chinese government regulation, the The master database The master Component 1: 1: Component SECTION 1.2 SECTION Or maybe the local government of City X Shanghai, who selects this risky company to project. build a big local infrastructure Ministry of Ecology and Environment knows Ministry of Ecology and Environment big polluters, but that information they’re is unknown to the government of city Maybe the Administration General of Customs knows that Corporation X has a history of import violations, and the creating what policymakers call creating “data islands”. connected databases controlled connected databases controlled by dozens of government agencies talk to each other, that don’t But there’s a problem: this data is a problem: But there’s of poorly- hundreds across spread 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System assess the service quality, solvency, and solvency, assess the service quality, of companies and corporate responsibility in their sector. professionals cover all of these in depth use cases in We’ll later sections. Risk prediction also hopes that social credit are There tool, data can be used as a risk prediction rather than just a mechanism for reactive instead of punishment. In other words, just issuing punishments for bad credit after violations happen, they want to use will use the data will use it to will use it to find out will assist the government Branches / subsidiaries Executive-level personnel Annual reports informationperiod, etc.) (taxes paid and owed, tax rate, tax Tax history Social insurance payment fund deposit history Provident Administrative licenses Administrative penalties received Inspection records and honors Awards Utility payment history Red and blacklistrecords Basic company registration data registration Basic company stock info) representative, legal (shareholers, Equity sructure • • • • • • • • • • • • FIG 1.2-B: What’s in a corporate social credit record? credit social in a corporate What’s FIG 1.2-B: TYPES 14 BASIC RECORD • • well they’re servicing local populations. well they’re platforms Tech offenders, credit in punishing and rewarding assess lenders on fintech platforms, and services to those with preferential offer good credit. Industry associations Financial institutions whether or company poses or not a person a lending risk. The central government to assess how well governments are local and how complying with national directives 10 section on will use it to assess the will use the data to assess . Religious beliefs Religious Fingerprints Genes Medical history Blood type • • • • • legal, civic, and professional conduct of legal, civic, and professional citizens and businesses in their areas. entities, to conduct different types of entities, to conduct different the assessments. Remember, credit extends here Chinese definition “credit” of and means beyond the sphere, financial debts, as well ability to repay both one’s trustworthiness, or sense of civic as one’s responsibility. State agencies the compliance of people, companies, and within their jurisdiction. organizations Local governments is also no evidence to support theis also no evidence claim that ecommerce online through items purchased being currently shopping platforms are in the national We SCS database. recorded dig a little deeper into this in our tech platforms data will be used How up The central government is offering levels of access to SCS data different public and private sector to different We also know what isn’t being gathered on on being gathered what isn’t also know We prohibitions specific are individuals. There on the the of data about inclusion following records: things credit in social there been reported, Contrary to what has

9 7 The document outlines The document [FIG 1.2-B] 5

10 This will on include data 8 The Suzhou city database will The Suzhou city database 6 [FIG 1.2-C] A selection of different documents also give A selection of different us a look into what kind of information is generally being compiled on individuals. Data on individuals types of records each corporate social credit each corporate social credit types of records file will contain. both domestic corporations, and foreign both domestic corporations, and foreign companies doing business in China. 2019 spells out the A newer document from to companies, ratherthan individuals, and 75% of that as “open is earmarked to the public”. central government document (and 80% of the is that around sources) related datasets in the national database relate One of the more interesting points interesting One of the more looking at the 2016 through uncovered contain 130 datasets. Data on enterprises ranging. The Hubei provincial database, provincial ranging. The Hubei for example, will contain nearly 8000 data points. a few different provinces and cities and outlining provinces a few different exactly what will their be in databases, and wide- even more these documents are be included in thebe included master database. also seen some documentation from We’ve will to the contribute was central database in 2016. released that categories of datasets will 400 different The most recent document about the about document recent The most datasets that agency each government 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System Though Most and that is blacklist and redlist records. there’s a lot of hype surrounding surrounding there’s a lot of hype next- Beijing’s plans to use like generation technologies and facial remote sensing, AI and process recognition to gather as it stands, social credit data, being gathered this information is human beings and entered by spreadsheet. manually via Excel While high-tech pilots are being carried out in some sectors, the is still a far cry from an system digital all-seeing, all-knowing panopticon. of records contained in the master database are records already was the government generating in the course of its daily operations. There’s only one major type of data record new created specifically for that was use with the social credit system, of administration of administration records Inspection data Self-submitted This data isn’t high-tech. This data isn’t high-tech. This data isn’t new. • • 2. 3. In the next section, we’ll explore the In the next section, we’ll explore blacklisting system, and how this new type is being used. of government record With that bears pointing in mind, it out: 11 11 Records generated by the generated by Records in the normal course government Various “good citizen” awards Various of a company found in violationof a company found in of regulations City volunteering donation Blood and bone marrow Charitable contributions Timely of librarybooks return “Good deeds” for received and recognition Awards innovation, patents and inventions Literary awards awards Heroism Traffic violations Traffic ethics Violations professional of Evasion of military duty Academic fraud Patent or copyright fraud scamming Telecom Insurance fraud or cheating on examinations Lying Serving as the legal representative 1. • warning” will publicly. be issued Final thoughts The data contained in the database comes major sources: three from CIVIC BEHAVIOR • • • • • ACHIEVEMENT RECORDS OUTSTANDING • • • REGULATORY AND LEGAL VIOLATIONS REGULATORY • • • • • • • • • Incarceration Recidivism Communist Party membership and status Social security payment Utility bill and telecom payment history Child support payment history Civil and criminal court records to carry out court-ordered Failure judgements Professional qualifications Professional of Registration as legal representative any company payment history Tax record Bank loan repayment Name ID number Gender Other identifying basic data • POLITICAL DATA • • • • LEGAL HISTORY • • • • FINANCIAL INFORMATION • EMPLOYMENT INFORMATION • • • • • BASIC IDENTITY INFORMATION BASIC IDENTITY • FIG 1.2-C: Data collectedFIG 1.2-C: individuals on on a “Big Data Alert List”, and an “early than individuals. A 2017 policy states that have those companies whose records will be placed areas been flagged in three or tainted food scandals) actually occur. to companies This idea applies more computational tools to determine targets computational determine targets tools to action for inspections proactive or take (like public safety incidents problems before 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System 12 12, 13 and organizations. There are are There and organizations. The first blacklist arrived on the scene by the Supreme in 2013. It was created companies day. There are blacklists for polluters, are There day. blacklists that for companies fail to pay wages, blacklists for disseminating banned content online, transport for overloaded vehicles, for social insurance fraud, and many more. a bit of a mess. But it The system is, frankly, start out that way. didn’t The first blacklist hundreds, if not thousands, of corporate hundreds, announced every are blacklists, and more : individuals

Chinese government hasn’t provided a clear, concise hasn’t provided Chinese government of what it actually is. explanation attention, it’s poorly understood. But there’s a good poorly understood. But attention, it’s is complicated, and the the system reason for that: The blacklisting system is the second piece of the SCS second piece of the SCS is the system The blacklisting a good deal of blacklisting has attracted puzzle. While The blacklisting system The blacklisting Component 2: 2: Component SECTION 1.3 SECTION The majority of them, however, target target The majority of them, however, for tax evaders, and blacklists for phone scammers, among other things. A few of these blacklists target A few of these blacklists target blacklists for people that default are There judgements, blacklists on court-ordered authorities use to penalize those who are in authorities use to penalize those who are violationregulations. of various Thing is, there is no master blacklist. On the Thing is, there “blacklist” is a catchall the word contrary, lists of different term for the many hundreds file of bad actors stored in some file of bad actors stored lockbox. secret When we hear the word “blacklist”, When we hear the word imagine a single master easy to it’s 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System 14 [We urge] various units such urge] various [We as trade associations and chambers of commerce, big data enterprises, financial institutions, news media, social organizations and individual citizens to information on provide and the trustworthiness dishonesty of relevant subjects to the appropriate departments, government [who should] explore and study them as an important reference for the identification of [new] blacklists and redlists. them: a good chance you’re on the on luxury- you’re chance a good consumption blacklist; on the and inclusion luxury-consumption blacklist automatically to thegets you added no-fly and list the no- listhigh-speed-rail as well. Blacklist party! implemented around These blacklists were system the same time that the social credit (2013-2014). the ground was getting off policy the has developed, As social credit for the NDRC (the state body responsible implementation of the SCS) has called for the expansion of the blacklist system into urging of market regulation, other areas use government agencies to identify more of more cases for blacklists to create and And boy did they ever. State entities at all And boy did they ever. levels of government began churning out Link See an example doc Policy source doc Policy source Search the list Search See an example list the Search list the Search doc Policy source Search the list Search 13 What it is For companies that owe unpaid wages to migrant workers 严重拖欠农民工工资用人单 位及其有关人员 The no-fly list The no-ride list 失信被执行人 For those banned from non-essential consumption 限制消费人员 seriously Targets untrustworthy entities involved in the financial sector 涉金融严重失信人 tax evasion and Targets fraud 重大税收违法案件当事人 For untrustworthy importers and exporters, smugglers, etc. 海关失信企业 For acts of serious dishonesty in food and and drug production marketing (this list is still under development) 食品药品生产经营严重失 信者 Court defaulter blacklist Court defaulter FIG 1.3-B: Major nationalFIG 1.3-B: blacklists Agency that owns it Administration China Railway of Market Regulation (probably) Ministry of Human and Social Resources Security China Aviation State Taxation State Taxation Administration Customs State Administration Supreme People’s Court People’s Supreme Court People’s Supreme NDRC 限 a public 失信被执 . [FIG 1.3-B] ). Inclusion on this list means where you can search through it. through can search you where ). ), more popularly referred to as laolai 老赖 defaulter blacklist, for example, there’s defaulter blacklist, for example, there’s There’s a lot of overlap between these There’s lists, and inclusion on one can also mean on the court If you’re inclusion on another. some of which also have their own public portals. search In recent years, an increasing number of years, an increasing In recent blacklists of their own, state bodies created searchable website searchable grows The blacklist system rail tickets, you can’t renovate your house, renovate rail tickets, you can’t stay in high-end hotels or send your kids to swanky private schools. It too has a from luxury consumption luxury of any kind ( from 制消费人员 buy plane tickets or high-speed you can’t The courts also created a complementary The courts also created barred punitive blacklist for those who were The court defaulter blacklist still exists today. The court defaulter blacklist still exists today. the and most well-established biggest It’s there’s and blacklist in the country, website 行人 ( court-ordered child support payments. The child support payments. court-ordered thatpeople and companies end up on this called “court defaulters” ( list are (despite having the(despite having ability so), and to do might also get on the blacklist You you go. backlisted for thingslike failing to make on court-ordered judgements. In other judgements. on court-ordered to pay ordered you’re you get sued, words, pay RMB 1 million don’t in damages, you People’s Court to crack the Court to on people whip People’s follow who failed to and companies through 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System fines or carry out court-ordered judgements trains endangering ecology licenses violations Failure to pay court-ordered court-ordered to pay Failure badly on planes and Behaving evasion Tax Engaging in scamming Excess energy consumption Excess or Polluting the environment the right Operating without accidents Safety violations and and IP Counterfeiting, fraud, Poor production quality • • • • • • • • • • blacklisted for a different set of issues. blacklisted for a different personal and The link between corporate blacklisting of a company are records The credit of its key records tied to the credit legal registered personnel, specifically its If a company is blacklisted, representative. its senior management may see their take a hit, and they may personal credit be blacklisted as well, or penalized in a But this list as longer to get much is set in the of medicine, fields travel, regulators e-commerce, education, sports, agriculture, and hone and others to create start energy, their lists own to discourage like: behavior typically Generally individuals speaking, are safety (especially migrant workers) (especially Fraudulent financial activity Fraudulent evasion Tax offenses Import-export health and Endangering public Not honoring legal obligations Not honoring employees to pay Failing • • • • • • for different reasons. Major blacklist-worthy Major reasons. for different include: for companies offenses 14 Notes Training schools will be blacklisted for failing to legally schools will be blacklisted Training employing operating in unsafe locations, register, uncertified or unqualified teachers, and other violations. for Companies and individuals will be blacklisted “disseminating information that violate social morality, or integrity online” or business ethics, honesty, equipment, or technology, “intentionally providing information services for the same purpose.” The announced blacklist will target natural resource natural resource The announced blacklist will target survey teams that falsify results. management service companies Will property target for “major safety incidents” or other responsible incidents”. “large-scale Will “untrustworthy” delivery companies. target safety Enterprises will be blacklisted for serious fire minor in loss of life, repeated incidents that result safety refusal to comply with fire safety incidents, fire safety. to fire fraudulent activities related regulations, Location Qingxu District, Naning, Guangxi National National Haikou, Hainan National Weifang, Shandong Companies and individuals get blacklisted Blacklists enforce existing laws existing enforce Blacklists It bears pointing out that the blacklisting new set (usually) create system doesn’t Blacklisting happens due to of offenses. or breaking violating existing regulations extra layer it adds an In other words, the law. in place, to rules already of enforcement rules. a new set of rather than create Getting on a blacklist Industry affected Express delivery providers Express All industries Extra-curricular education institutions All industries Natural resource survey units Natural resource (esp. at county level) management service Property companies FIG 1.3-C: Examples of existing or announced enterprise blacklists 15 19 17 18 16 20 [FIG 1.3-C]. Who owns it Cyberspace Administration of China Naning bureau of education Naning bureau National Postal Service department Fire Haikou property management Haikou property department Ministry of Natural Resources rather than on making sure everyone is a everyone rather than sure on making some othergood communist, or overtly Orwellian goal. You’ll notice that the focus of most primary You’ll of of these blacklists the is on regulation malpractice in the environment, business certain industry. You can see a small sample You certain industry. in own jurisdictions. Some of these newer a certain geographical blacklists target only a national, only target but others are area, ever-more-specific blacklists applicable to ever-more-specific the and individuals businesses within their 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System Zhang eventually dug himself 24

25 In Xie’s case, his advertising In Xie’s case, his advertising another sued by was company a contract dispute firm over and lost. The judge ordered which $127,000, Xie to pay months later, he didn’t. Seven without notice, Xie’s name added to the [court was defaulter] blacklist – one that companies are encouraged to check before entering deals. suggesting that notification systems are suggesting that notification are systems thatweak, and individuals companies and until a problem there’s often unaware are apply for an operational go to they say, license denied. book travel and get or Yingjie, what happened to Zhang That’s by Vice the Rongcheng citizen profiled was record News whose social credit a loan on damaged when he co-signed which the other skipped out, and signer was subsequently blacklisted without his knowledge. been blacklisted he tried to buy a when plane ticket online and was blocked by the system. also several examples of are There of their blacklisted companies unaware hit with the status until they were repercussions. not that notification never happens It’s out of the hole by fulfilling the terms of the deeds as stipulatedloan, and doing good by the government. Something to ad agency similar happened he’d who only realized owner Xie Wen, ) – ) – stays on record ) – stays ) – stays on record ) – stays 特定严重失信行为 一般失信行为 严重失信行为 years for 6 months to 3 ( behavior depends ( to 1 year for 3 months Serious uncreditworthy behavior ( behavior Serious uncreditworthy uncreditworthy Extremely serious Standard uncreditworthy behavior behavior uncreditworthy Standard • • • volunteering, giving charitable donations, or donating marrow. blood or bone been you’ve know do you How blacklisted? with lies one of the major problems Herein state of SCS implementation: the current a lot of anecdotal evidence there’s For the first two, rectification involves For the first two, that the proof a bunch of paperwork, that key proof violation has been corrected, creditworthiness personnel have completed not to training courses, and promising again. offend serious” that fall in the “extremely Offenses and my lead to category may be irreparable, of business licenses permanent revocation and operational permits. Individual credit rectification tends to credit For individuals, rectifying that you’ve rectified proof involve providing in the whatever situation you in trouble got a debt, for example), first place (paying off and undertaking community service, like behavior is classified under one of one of under is classified behavior the followingcategories: 15 22 23 depending on the nature and severity of depending on the nature corporate the violation. Uncreditworthy blacklistthe depends on severity of the violation, and the steps that the person or the underlying enterprise takes to rectify issues. In some cases, blacklisting lasts for In other cases, up to six months to a year. five years. And for corporations, in cases endangerment has been severe there where blacklisting may of public health or safety, be permanent. Corporate credit rectification differ fixing bad credit for The procedures Chinese regulators are aware that unless aware are Chinese regulators which an obvious path through there’s can be fixed, idea the whole bad credit policies of the SCS falls so recent apart, focus on standardizing have placed more and clarifying process, repair the credit procedures. rectification and new, are That said, these procedures to suggest that anecdotal evidence there’s easier said than is done. credit correcting The amount of time that one stays on a There’s one other area of possible of possible one other area There’s blacklisting: scoring and interplay between thatcompanies consistently a have agencies (a low various from low grade the Ministry of ratingemissions from may for example) Environment, Ecology and inspected and would rigorously be more as prime likely to be considered be more candidates for blacklisting. blacklist Getting off a

21 taxpayer status. a financial credit score, and the tax bureau and the tax bureau score, a financial credit would take this into account when deciding them “Grade A” whether or not to award For example, if a company has been rating would agencies blacklisted, credit take this when assigning them into account points, in situations where points and points, in situations where assigned. grades are Actually, it tends to work the other way Actually, getting blacklisted directly may around: of in a lower grade or reduction result judgement results directly in blacklisting, directly judgement results not in a deductionpoints that of then results in blacklisting. For example, landing on the court defaulter failure affair: blacklist is a straightforward on a court-ordered to follow through does not happen as a direct result of any result does not happen as a direct too low. dropping kind of score the score drops below a certain minimum below drops the score blacklisted? they are threshold, In most cases, no. As a rule, blacklisting not being blacklisted is tied to some kind of companies are point system. In other words, grade, and if or a score or people assigned blacklisting = lower credit scores? blacklisting = lower of confusion is whether or Another big area that was blacklisted. score = blacklisting, or credit Low holding positions leadership founding, at, or other particularly companies, companies operating in the as the same industry one way that causes lifelong career setbacks. way that lifelong causes career from Blacklistedindividuals can be barred 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System 16 is an excellent , China’s Social Credit System: Social Credit China’s China Law Translate chinalawtranslate.com Daum maintains a SCS expert Jeremy portal of Chinese crowd-funded crowdsourced, legal documents with a section dedicated to information about the SCS and the blacklisting system. Rogier Creemers piece Creemers’ Mr. An Evolving Practice of Control online. work on the for free topic, and is available maintain a series of websites where blacklist websites where maintain a series of information is published, and blacklists are on thealso often pushed out social media agencies and law channels of regulating enforcement. reading Further If you’d like to dig into blacklisting in serious two primary are academic depth, there on the topic: resources public a matter of are Blacklists redlists and policy Chinese (very) public record. media state agencies, clearly encourages to do outlets, cares anyone else who and so, to publicize blacklist data, both for the purpose of warning the public not to engage with bad actors, and to name and them to force in a bid to shame offenders measures. rectification undertake credit Both national governments and local resource conservation charities relations records Environmental protection and Active participation in social Active Good financial credit Product or service innovation Good social insurance payment Good social insurance payment Maintaining “harmonious” labor • • • • • • Blacklists and redlists are that incentivize: whole series of local redlists at the city and whole series of local redlists levels. As with blacklists, market provincial redlists flurry of a releasing are regulators Redlists are structured along similar likes structured Redlists are a few big major are as blacklists: there at the national level, and then a redlists rolls. Model citizens Model with and companies rolls. get added to these, records excellent credit exemplars. and publicly applauded as credit Where the stick exists, so exists the carrot. the stick the exists, so exists carrot. Where sibling, called Blacklists have a pretty kind of like honor Redlists are redlists. Redlists not well-executed, and that theonus is on the blacklistedto stay informed. party court-ordered reparations in a defamation reparations court-ordered letter from official an case, didreceive authorities), but it is clear that notification is (Chinese MMA fighter Xu Xiaodong, who Xiaodong, fighter Xu MMA (Chinese to carry out the was blacklisted over failure 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - Special Report: Understanding China’s Social Credit System That credit file is available to all is available credit file That via agencies government other Credit Information the National Sharing Platform. not target is then The blacklist who agency the by only penalized all the them, but by blacklisted each use other agencies, who to punish (or powers their own the blacklisted party. reward) 3. 4. turn. If they have a good credit record, record, turn. If they credit have a good everything gets a little easier for them. with one get in trouble simply, Even more with all institution, and you get in trouble institutions. see this dragnet Chinese regulators as a enforcement to regulatory approach and an to rule-breaking, detterent strong incentive to stay compliant. equally strong Practical Examples best illustrated through This is probably example, so in this section, we’ll lay out and Punishment plays how Unified Reward the lens of a four key state out through agencies. The goal here is to create an inescapable an inescapable is to create The goal here Xi Jinping which, as President net through put it, “everything is convenient for the and the untrustworthy are trustworthy, step”. unable to move a single has if a person or business simply, Put more they’ll be peppered record, a bad credit with and barriers at every inconveniences : [FIG 1.4-A] All agencies jointly punish target Government agencies sign MOUs agencies sign Government Understanding) (Memorandums of to with each other, agreeing blacklists and honor each others’ redlists. government When one of those on a bodies includes someone a record of blacklist (or redlist), target’s social that is made in the credit file. 04 1. 2. Here’s how it works Here’s The framework is basicallyframework The series a in which agreements of legal to agencies promise government blacklists and each other’s enforce redlists. 17 Blacklisting agency adds to target blacklist . 01 Target Target (blacklisted party) 联合奖惩 Blacklisting agency Blacklist record Blacklist record is sent to NCISP database 02

database Blacklist is to circulated all agencies via NCISP national SCS, a framework that regulators call “Unified regulators call “Unified that a framework national SCS, and Punishments” Rewards What happens if you get blacklisted? Or redlisted? get blacklisted? if you What happens of the and final component lies in the third The answer Rewards & punishments Rewards Component 3: 3: Component SECTION 1.4 SECTION FIG 1.4-A: UNIFIED REWARDS AND PUNISHMENTS FIG 1.4-A: UNIFIED REWARDS 1.0 - SOCIAL CREDIT: THE BIG PICTURE THE SOCIAL CREDIT: 1.0 - 03 Special Report: Understanding China’s Social Credit System ), GAC issues its [FIG 1.4-B] 海关高级认证企业 coordinator procedures, like classification, procedures, like and origin verification valuation, of goods cargo documents and export Access to a dedicated customs Self-certification of origin Fast-tracked bureaucratic Fast-tracked of inspections frequency Lower import of Simplified verification Priority customs clearance • • • • • • Other state bodies then step in to offer a Other state bodies then step in to offer whole lot of other perks. remained in Customs’ bad graces. The graces. bad in Customs’ remained policy indicate does that a timeframe but that set for liftingshould be restrictions, specified. timeframe isn’t For theIt also works other way around. those companies that land on the GAC ( redlist including: own rewards, Example 2: Ministry of Ecology and 2: Ministry Example Environment (MEE) As you might have guessed, the MEE is for overseeing environmental responsible issues. That includes conducting inspections on emissions and pollution. Like other agencies, the its own blacklists MEE keeps on those environmental who violate or endanger ecology. regulations and the Unified Rewards Through Punishments framework, getting blacklisted by the MEE triggers a similar set of firecrackers, mine production, firecrackers, and other safety evaluation, industries where public safety is a concern. difficult time getting approval for approval difficult time getting science and tech projects. participating or restricted from rights property in state-owned as state-owned transactions, such state enterprise assets and assets. establishing or restricted from insurance companies or other finance-related entities. to become the recipient of equity plans. incentive of increased inspections or in the food restricted approvals and drug industry. restricted from the production, operation and storage of dangerous chemicals, production and and operation of fireworks representative would be banned be would representative of the use from or restricted land, including forest state-owned construction forestry-related grassland development projects or projects. The company would be banned would The company be banned would The company be ineligible would The company be the target would The company be banned or would The company The company would have a have would The company • • • • • • Ouch. but they last forever, These penalties don’t as long as the enterprise would be in effect 18 financing. or restricted from participating in procurement bids. government restricted from issuing stocks and bonds. restricted from access to loans and financing. social security to receive Foreign Exchange would restrict would Exchange Foreign foreign exchange the company’s quotas. directors, representatives, supervisors, and senior managers in to serve not be allowed would leadership roles at either private companies. If or state-owned that person is already holding a leadership post at a state- be would they company, owned recommended for dismissal. representative of the offending offending of the representative the country. to leave company the enterprise restrict would from representative and its legal real estate or land, purchasing blacklist and add them to the from luxury of those restricted means they consumption, which or can’t purchase second-class on planes, trains, higher tickets and boats. would not allow the legal the legal allow not would The company and its legal The company The company would be banned would The company be banned or would The company be banned or would The company be ineligible would The company The State Administration of The State Administration legal The company’s The Supreme People’s Court People’s Court The Supreme • • • • • • • • 26 import and processing of raw import and processing of raw materials (which are then again after processing) exported verifications of import and export of import and export verifications cargo documents inspections of import and export inspections of import and export goods The Ministry of Public Security Raising import/export taxes import/export Raising Other measures Strictly supervising over the Strictly supervising over Undertaking examinations and Undertaking examinations Applying more frequent managers recognized by GAC GAC by managers recognized entities. as untrustworthy representatives (responsible representatives persons), directors, senior supervisors and …enterprises and their legal …enterprises and • • • • • • Other agencies would then step in with their own punitive measures: According to policy, GAC itself would to policy, According by: punish offenders evaders, and others violate customs who regulations. That would include smugglers, import tax That would include smugglers, import tax on to help GAC punish: Customs (GAC), the state body responsible theCustoms (GAC), responsible state body imports and exports. In mid- for regulating state agencies signed 2018, several dozen One of the examples of best-documented Punishments in action and Unified Rewards the Administration General of comes from Example 1: Customs 1: Customs Example 1.4 - SOCIAL CREDIT: THE BIG PICTURE - REWARDS AND PUNISHMENTS AND - REWARDS BIG PICTURE THE SOCIAL CREDIT: 1.4 - Special Report: Understanding China’s Social Credit System Advice and support Advice and Dedicated help for handling tax- matters related staff Consultations on contract law, training, and publicity On-site policy and legal advisory support Personalized advice and support mediation, trade, for commercial and maritime arbitration Reduced inspectionReduced rates Reduced environmental Reduced environmental inspections certain tax Exemption from inspections Reduced inspections or inspection frequency exemption for domestic samples product Lowered inspection rates inspection Lowered for major investment projects Financial benefits Financial Customs redlisting to be Customs redlisting an important considered metric in determining loan conditions at certain ports Export rebate of loading access to Preferential government financial support Better import and export Better import quotas 19 Priority consideration for policiesbeneficial Priority selection for awards Priority selection for awards and honors Priority participation in economic and trade fairs and international conferences government infrastructure government infrastructure projects consideration in Preferential government procurement bidding consideration for Preferential value-added telecom services Priority consideration for Priority consideration allocated for special funds FIG 1.4-B: Examples of “unified rewards” for being redlisted Customs by being for rewards” “unified Examples of FIG 1.4-B: Faster procedural Faster procedural processing Priority handling of IP services such as patent application and trademark registration Priority environmental licensing Priority environmental issuance of export Fast track approval rebates of Fast-tracked processing procedures bureaucratic of goods Priority release Fast-tracked consideration Fast-tracked consideration of for the establishment enterprises in the securities, futures fund management, and space access to land Preferential supply Fast-tracked administrative Fast-tracked and approvals examinations of rapid processing More overseas bond issuance credit Fast-tracked access to and financing Rewarding agencies Rewarding Promotion of International Promotion Trade All-China Federation of Trade All-China Federation of Trade Unions China Council for the Ministry of Emergency Ministry of Emergency Management Central Civilization Office, All- Federation, China Women’s Market Regulation State Taxation Administration State Taxation State Administration for Ministry of Natural Resources Ministry of Ecology and Environment Ministry of Industry and Information Technology Ministry of Finance China Securities Regulatory China Securities Regulatory Commission China Banking and Insurance China Banking and Insurance Regulatory Commission, People’s Bank of China, People’s China Banking and Insurance Regulatory Commission National Development and National Development Reform Commission 1.4 - SOCIAL CREDIT: THE BIG PICTURE - REWARDS AND PUNISHMENTS AND - REWARDS BIG PICTURE THE SOCIAL CREDIT: 1.4 - Special Report: Understanding China’s Social Credit System 29 been shut down or have had their or have been shut down internet operation license revoked due to violation of internet content laws internet authorities] but failed [by to perform the penalty that violates “social morality, and business ethics, honesty, intentionally integrity”, or if they equipment, technology, provided or information services for the same purpose They own a website that has a website own They otherwise penalized been They’ve disseminated information They • • • As with the other examples, inclusion on the CAC blacklist has the potential to impact business operations and personal freedom in a wide variety of ways. The interplay between the between The interplay no-fly list, the no-ride list, and other agency blacklists is which blacklisted the through mechanism travel. from restricted individuals are Cyberspace 4: Example China (CAC) Administration of for The CAC is the ministry responsible and for affairs managing internet-related online controversial implementing China’s censorship policies. by the CAC A July 2019 policy released states that individuals and companies whose online behavior is in violation of existing cyberspace laws will be placed on a blacklist years. Individuals and for a period of three companies will be blacklisted if: Commission and refuses to of tax regulations, perform tax obligations despite the ability to do so having serious dishonesty in the field of financial fund management of dishonesty in the field of social security in the securities and futures spaces People’s Court restricted luxury consumption blacklist Social Security “Other offenses” China Securities Regulatory China Securities Regulatory who is in serious violation Anyone Those responsible for acts of Those responsible for serious acts Those responsible for illegal acts placed on the Supreme Anyone Supreme People’s Court People’s Supreme Finance Ministry of and Human Resources Ministry of Administration State Taxation • • • • • • • • • • • There’s a similar agreement in place for a similar agreement There’s the state-owned enterprise China Railway, rail high-speed China’s that controls network: it has its own no-ride list, and also other state from honors the no-ride requests bodies. At the recommendation of those agencies, At the recommendation the CAAC willcitizens place on the no-fly list to air travel. People unrelated for offenses eligible for the list include: 20 Commission and illegally using electronic equipment despite being warned onboard an aircraft inspectors, check-in personnel, inspectors, check-in personnel and other civil aviation duties, or from performing their to committing or threatening carry out personal attacks fighting, one’s own], racks [beyond trouble, deliberately provoking damaging equipment, stealing from the aircraft, unlawfully opening aircraft doors, or otherwise disturbing order in the cabin security channels, or boarding or boarding channels, security gate goods, or controlled contraband hiding articles; deliberately or goods in carry-on restricted baggage checked entering or with aircraft, forcibly or runway striking the cockpit security to obstruct aircrew, striking the check-in counter, counter, the check-in striking National Development and Reform and Reform National Development Using open fire, smoking, Stealing other people’s property Ministry of Public Security Occupying seats and baggage Occupying Carrying dangerous goods, Carrying or interfering occupying Forcibly others Obstructing or inciting • • • • • • • • But through the Unified Rewards and the Unified Rewards But through Punishments framework, the CAAC also honors the blacklists of seven other state agencies: 28 27 fraudulent identification or other documents disseminating false terrorist information concerning civil defense safety aviation kWh kWh / RMB 0.10 violators increase by violations / RMB 0.05 violators increase by two categories by severity: fairly severity: categories by two violations serious (red-level) serious (black-level) and very Blocking, forcibly occupying, or Blocking, forcibly occupying, Using forged, altered, or Fabricating or intentionally Fabricating Electricity rates for black-level Electricity rates for black-level Electricity rates for red-level red-level Electricity rates for Violators are segmented into Violators are segmented • • • • • • that on the might land you list include: no-fly list. The list is managed by the CAAC, which has theto add passengers who power or illegal things in airports or do dangerous behaviors to policy, on planes. According Administration of China (CAAC) Much ado has been made about China’s Example 3: Civil Aviation 3: Civil Aviation Example files contain records of environmental of environmental records files contain violations: protection For example, in Jiangsu province, the in Jiangsu province, For example, MEE is working with State Grid to increase whose credit electricity rates for enterprises toying withother to punish mechanisms polluters. restrictions as getting in trouble with GAC as getting trouble in restrictions are MEE branch offices regional does, but 1.4 - SOCIAL CREDIT: THE BIG PICTURE - REWARDS AND PUNISHMENTS AND - REWARDS BIG PICTURE THE SOCIAL CREDIT: 1.4 - Special Report: Understanding China’s Social Credit System participating in government procurement, participating in government procurement, and other repercussions. registration certificatesas code the primary registration enterprise is identified.by which an A USCN for information on to search can be used the company National any China-registered Information Publicity Credit Enterprise System. systems 3. Corporate grading sections, under As we’ve seen in previous willtreat the SCS, market regulators depending on their companies differently with Companies good record. social credit will bureaucratic enjoy simpler social credit inspection rates, and decreased processes, other perks. Companies with poor social may have higher taxes, be subject to credit from inspections, be barred frequent more ) – to 统一社会信用代码 business license number tax registration number organizational code 1. 2. 3. each domestic company and organization. This new 18-digit identifier is a combination ID numbers that to be issued used of three separately: traditional The USCN has now replaced business license on business numbers FIG 1.5-A: NECIPS PORTAL - HTTP://WWW.GSXT.GOV.CN FIG 1.5-A: NECIPS PORTAL assigning a new code – theassigning a new code Unified Social ( Number Credit 2. Unified social credit social credit 2. Unified numbers to stepping stone a preliminary In 2015, as implementing the credit enterprise social system, the began central government 21 [FIG 1.5-A] China, including local subsidiaries of foreign China, including subsidiaries local of foreign companies. reports. notices of frozen assets, operational notices of frozen and any past violations. irregularities, for zero NECIPS is set to become ground corporate due-dillence, and will be a key for companies to monitor the state resource records. of their own credit than just a But the site is more also it’s clearinghouse for data discovery, a data management portal. Company can sign up for an account representatives and upload basic company data and annual NECIPS’s public records include information public records NECIPS’s and personnel, on key shareholders operational licenses and permits, inspection notices of company dissolutions, results, , a National Enterprise 国家企业信用信息公示系统

system Credit commitment letters Company grading systems Company random inspection The new The National Credit Information Publicity System Unified social credit numbers 5. 3. 4. 1. 2. These are a little boring and technical, so unless you’re so unless you’re little boring and technical, These are a this bit. can safely skip in China, you doing business There are five ancillary aspects of the SCS that only aspects of the SCS ancillary There are five not individuals. and organizations, apply to companies for companies More SCS components SCS components More SECTION 1.5 SECTION any company with a license to operate in Credit Information Publicity System Credit (NECIPS) website which contains compliance data on Corporate social credit records are available are records Corporate social credit to the public via the 1. The National Credit Information Sharing Platform This section will cover: 1.5 - SOCIAL CREDIT: THE BIG PICTURE - MORE SCS COMPONENTS FOR COMPANIES FOR SCS COMPONENTS - MORE BIG PICTURE THE SOCIAL CREDIT: 1.5 - Special Report: Understanding China’s Social Credit System 31 The system , the results , the results , wherein , wherein 32 per se （双随机，一公开) One Open” One both the and thecompany to be inspected selected (hence randomly are inspector and the“double random”), inspection openly published (“one open”). are results was to goal here The government’s the timing of inspections so standardize one excessively target that inspectors can’t and to another, company while ignoring so that the inspection process standardize have as much discretionary inspectors don’t decision-making power. a core While random inspections aren’t component of the SCS in a company’s social credit file. social credit in a company’s 5. Credit commitment letters additions to the SCS One of the most recent commitment is something called the “credit in a national system”, which was introduced 2019. in July, policy released encourages companies to sign standardized to operate in good faith letters promising regulations. and to honor social credit commitment letters are Signed credit openly publishedthe on National Enterprise Information Publicity website System Credit social in the included company’s and are who file. Companies with good credit credit commitment letters may have signed credit applications pre- have various bureaucratic of their promise. on the strength approved of these inspections are publicized on the of these inspectionsare Information National Credit Enterprise included Publicity and are System website, for social credit). for social credit). 4. The new random inspection random 4. The new system took a step In 2015, Chinese regulators cracking down on corruption by towards implementing a new safety and production inspection system called “Double Random, Industry associations decide which data issuing grades, and points to look at when what the evaluation will criteria be. Mostly, they’ll gather data via voluntary submissions on withoutby member companies, relying thethose central SCS database, but a few of on blacklistmetrics would depend data and other information available through Information the National Credit Enterprise Publicity System. 4. Financial credit scores As of June 2019, over 130 agencies had to scores to issue credit approval received on this in the section on enterprises (more Financial Applications Which score matters most? have Though regulators This is unclear. will stated that all four of these scores be taken into account when deciding they haven’t treated, how companies are specified which willbe the most important. commerce play a vital role in the Chinese a vital role play commerce thesemarket. Though bodies aren’t technically entities, government state ask theiragencies often when advice to the new policies relevant creating industry. 22 participate in an interview or interview participate in an interviewees), non-compliant into [the and incorporated credit social company’s] record and pushed out to the National Credit Information Sharing Platform. person warning interview interview warning person to person in charge with the of the evaluation inform them and [the specific results dishonesty that acts of [The in this score]. resulted should clarify] interviewer and credit repair channels personnel] urge [responsible rectify their to immediately time, credit. At the same should be the interview refusals to recorded (including in various areas. For example, if a company in various areas. honoring import- has a history of rigorously an you may recieve export regulations, Customs. If you always pay “AA” grade from may assign you your taxes, the tax bureau Grade A taxpayer status. 3. Industry association grades also creating Industry associationsare grading systems that primarily look at the service quality and operational soundness of companies within their sector. 2. Operational grades typically letter grades (A-D) These are issued by state agencies, and will assess a compliance level of regulatory company’s Industry associations and chambers of 30 公 ) ) will be based on the data ) 优 中 ) ( ) 良 ( 差 ( Medium Poor Excellent ( Excellent Good regulator to conduct an in- of the city or county social will cooperate credit system with the appropriate industry For market entities whose market For are “poor” results evaluation … the leading department 3. 4. 1. 2. special training sessions to stress the special training sessions to stress management. But: importance of credit “excellent” and “good” will be told to keep up the For those good work. whose “medium”, the are evaluation results briefings and government will organize Companies whose evaluation results are are Companies whose evaluation results qualifications honors and rewards, and rewards, qualifications and honors corporate social responsibility. one of four grades: Companies will receive Information Publicity System, and will score Information Publicity System, and will score judicialcompanies based on complaints, violations, of contract, regulatory breaches The Comprehensive Public Credit Rating ( Public Credit The Comprehensive 共信用综合评价 contained in the National Enterprise Credit 1. Comprehensive Public Credit Public 1. Comprehensive Rating based on four different types of grades that types four different based on willcompanies receive. The determination of who has good credit The determination credit has good of who be will largely bad credit and who has 1.5 - SOCIAL CREDIT: THE BIG PICTURE - MORE SCS COMPONENTS FOR COMPANIES FOR SCS COMPONENTS - MORE BIG PICTURE THE SOCIAL CREDIT: 1.5 -

Special Report: Understanding China’s Social Credit System 23

Social credit and individuals Social credit Citizen social credit social Citizen 2 Special Report: Understanding China’s Social Credit System [FIG 2.1-A] Point scale 0-200 start at 1000, with AAA-D grades Scores range. assigned based on score start at 1000, with AAA-D grades Scores range. assigned based on score start at 1000, with AAA-D grades Scores range. assigned based on score 0-1000 350-1200 750+ (excellent) to 550- (poor) From “excellent” to “needs Five levels from improvement” programs. Scoring systems Scoring Using their own data, and the from data independently some cities are NCISP, citizen systems that ranking assign creating score. citizensnumerical credit a what systems are These city-level scoring on the SCS, often get cited in media reports sometimes confused for national and are scores. different completely The scoring pilots are Some cities have decided city to city. from some on a 0-1000 on a 0-200 scoring scale, evidence that is scale, and this discrepancy dictate how the central government didn’t but left it up to citizens should be scored, the municipalities to come up with their own

Scoring system Haibei Points Points Yuming Lehui Points Qianjiang Points Points Heron Osmanthus Points Xichu Points Rongcheng Points 35 39 FIG 2.1-A: Examples of city-level citizenFIG 2.1-A: Examples of city-level social scoring systems 40 37 33 34 36 38 Location Weihai Fuzhou Wuhu Hangzhou Xiamen Suzhou Suqian Rongcheng Good deeds get reported too: if you too: Good deeds get reported service, thevolunteer for community related department will submit that info. If you the local marrow, donate blood or bone health will planning commission log your donation. Though this data collection happens at the up in your nationalcity level, it also ends since the city passes the data record, credit the National Credit up the chain through Information Sharing Platform (NCISP) to the and national databases. provincial school, the municipal bureau of education theschool, bureau municipal thatwould submit information your city to property pay your don’t If you record. credit fees, themanagement authority city housing report. will that submit to your credit 24

the city credit database. If you’re caught database. If you’re the city credit at the local teaching under false credentials level, but on a smaller scale. for is responsible Each city bureau gathering data that and logging relates then submitting to its administrative area, The SCS database. that info to the city’s being submitted to the SCS that are records that were the same records database are collected being by government already departments. For example, if you get caught drunk driving, the city police would violation of the traffic keep their own record as usual, and also add that violation to City governments are the key players for City governments are city A person’s individual social credit. responsible are of residence and province for collecting and managing most of the information about them. Within cities, data collection, blacklisting, mechanisms and punishment and reward happen just like they do at the national

Now, we’ll zoom in a little bit, and take a closer look at in a little bit, and take zoom we’ll Now, life. will integrate into daily the system how So far, we’ve taken the macro view on social credit, and on social credit, the macro view taken So far, we’ve to businesses. SCS primarily as it relates the examined The SCS in daily life in daily The SCS SECTION 2.1 SECTION leashing your dog in public) and encourage good behavior (like donating blood, doing volunteer work, and giving to charity). more local scale to discourage local bad behavior more garbage, to properly (like jaywalking, failure and not smoking in non-smoking areas, evasion. But thebeing used on a smaller, SCS is also can get placed on the national court defaulter blacklist for failing to carry out judgements, for example, court-ordered or placed on the national no-fly list for tax On a national the scale, SCS is being used to punish serious legal violations. People similar hopes that it will create a similar hopes that it will create of rule-following between culture individuals in a day-to-day context. social credit system is to create a system is to create social credit of legal compliance in the culture are there business community, Though the primary aim of the 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System Points subtracted 30 30 30 30 30 50 than 5 traffic violations 30: More light or such as running a red other one-time violations worth 6 driving penalty points than 10 violations 50: More 30 50 50 50 50 30: Buying drivers license points Blacklisting: Selling drivers license points 50 50 20: Warning or demerit 20: Warning warning,30: Serious major demotion demerit, or probation 50: Dismissal, 80: Expulsion 80 to 0, placement Points reduced on defaulter blacklist 20 50 30 50 80 30 50

25 Behavior penalizedBehavior Driving while severely intoxicated Driving while severely Driving on drugs Lifetime driving suspensions to take exam in your place license exams or sending others Cheating on driver’s Buying or selling drivers license points on payment of goods Being in arrears to public welfare Serious criminal activity relating Evading or refusing to perform military duty Evading or refusing or judgement sentence to carry out a court-ordered Failure after failing to do so after the first order sentence Carrying out a court-ordered of others on the legitimate rights and interests Fraudulent litigation infringing duties in the fulfillment of their with judicial organs and failing to cooperate criminal penalty by is exempt from Citizen was found guilty for 3 years or less Incarceration or recidivism than 3 years for more Incarceration is brought Minor crime for which no prosecution litigation Implicated in Civil public interest bad conduct, insulting students under false credentials, Teaching classes for make-up / remedial payment Taking Illegally running schools or educational institutions achievements and seeking on others’ scientific and technological Encroaching in technology transactions. illegal interests Public Security Bureau Receiving administrative punishment by the Being detained by the Public Security Bureau by law enforcement traffic violations, including parking violations Standard plates and other traffic Drinking and driving, hit and run, covering license violations worth 12 driving penalty points Disciplinary action Disciplinary FIG 2.1-B: Fuzhou draft policy – Social Credit Points Subtracted for Dishonest Behavior (Individuals) Behavior for Dishonest Subtracted Points policy draft Fuzhou FIG 2.1-B: Credit – Social Responsible city dept. Responsible Procuratorate Education of Bureau Science and of Bureau Technology Public Security Bureau Municipal Discipline Municipal and Inspection commission Department of the Armed Forces People’s Court show a complete , a few problems , a few problems [FIG 2.1-C] [FIG 2.1-C] The poicy outlines which

41 and and ), home of Yuming Points (scale ranges ), home of Yuming 抚州 gain them. That’s because most of the ways gain them. That’s There are a lot of ways for anyone to lose a lot of are There points, but not as many ways for anyone to The point system isn’t very isn’t very The point system egalitarian Looking at point systems like the outline in [FIG 2.1-B] jump out right away: Problems being gathered and evaluated, and how being gathered much importance is attached to various behaviors. because of the of points assigned number or deducted, but rather because it paints of which behavioral data is a clear picture logging and submitting that data. think this table is fascinating, not We from 0-1000). from deduction, in a point behaviors will result increase, in an which behaviors will result for responsible and which departments are comes from a draft policy released in a draft policy released comes from August 2018 by the government of Fuzhou ( [FIG 2.1-B] system. This example of a city scoring Chongqing. The housing authorityChongqing. in Jinan will have basically the same files as the housing authority in Shenzhen. are based on are the police same. The based on are are in Suzhou willdepartment gather the same as the police in department set of records But though the scores differ from city to from differ But though thescores the data set those underlying scores city, 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System Points subtracted 100 30 15: Each payment past due by over 5 months. Max of 30 points 15: Each payment past due by over 5 months. Max of 30 points 30 30 30 30 30 30 30 30 50 50 30 50 30 50 30 30: Will based on public be by the Tax announcements made those in serious arrears Bureau, will be blacklisted. 50 30 50 50 26 Behavior penalizedBehavior Standard administrative punishments Standard examinations technical qualification to health professional Violations related identification for non-medical Medical practitioners who conduct fetal gender gender on the basis of the baby’s needs or who termination of pregnancy Two-Child Policy to pay the fines for child bornin violation of the Failure Birth certificate fraud disturbances in a hospital, obstructing law creating Practicing medicine illegally, violations and other medical-related enforcement Rule breaking during judicial examinations Rule breaking community correction Non-compliance with and fees, withholding of tax local taxes and pay relevant to declare Failure personal income tax, etc. such as non-deductible arrears inspection infractions Tax medical insurance benefit fraud, social security and Illegal use of child labour, as ordered dishonest acts to correct and refusal to than 10 people, failure wages to more withholding or owing Unreasonably strikes petitions, over RMB 500,000, and causing group pay wages in amounts and other public incidents in inclusion in the Civil Servant Exam [Violators] that results Rule breaking Expert Exam [Violators] Database Database or the Technical Absconding while owing wages administrative punishments Bad behavior, management fees on property Being in arrears payments for low-income housing and public housing on rental Being in arrears vehicles loaded over the legal limit Passenger and freight Transportation of who have been flagged by the Bureau drivers Taxi land of forest changing the use indiscriminate deforestation, trees, Destroying land without authorization, causing forest forest without authorization, reclaiming a license negligence, and use of veterinary drugs without through fires permission,Operating an entertainment business without in or engaging publishing without permission Changing the stated use of charitable donations without notifying givers donations without stated use of charitable Changing the or public aid elderly care subsidies in information fraudulent to receive Providing by law practitioners Illegal behaviors FIG 2.1-B: Fuzhou draft policy – Social Credit Points Subtracted for Dishonest Behavior (Individuals) for Dishonest Points Subtracted Fuzhou draft policyFIG 2.1-B: – Social Credit Responsible city dept. Responsible Forestry Bureau Forestry Radio, Television, Culture, and Sports Tourism Bureau Health and Family Planning Commission Bureau of Human Bureau and Social Resources Security Housing Authority Transportation of Bureau Bureau of Civil Affairs Bureau Justice Bureau of Finance Bureau Giving charitable donations Performing “good deeds” Doing volunteer work Doing volunteer Donating blood or bone marrow • • • • catch those violations. But how does the government find out you gave someone back their wallet? mechanisms for “positive” behaviors. The light because police a red know you ran cameras designed to traffic are there are already well-established collection already are mechanisms in place for most offenses, established collection aren’t there acts of charity set up weren’t Human bureaucracies acts of kindness. While there to record Violations are easier to record than Violations are easier to record than According to these the point scales, only According ways that anyone, at any stratum of society, can raise their points at will and by choice by: are innovation awards, and literary awards and literary awards innovation awards, generally favor the highly-educated. you happen to have knowledge of thatyou happen to have and luck. crime – a matter of circumstance awards, entrepreneurship Technological Being rewarded for providing important for providing Being rewarded that requires clues in a criminal case are awards which many people aren’t in a aren’t which many people awards are particularly those in low- position receive, to income brackets. to increase points are things which over are points to increase or else they very littlepeople have control, 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System Points subtracted 30 15: Each payment past due by over 5 months. Max of 30 points 15: Each payment past due by over 5 months. Max of 30 points 30 30 30 30 30 30 30 30 50 50 30 50 30 50 30 30: Will based on public be by the Tax announcements made those in serious arrears Bureau, will be blacklisted. 50 30 50 50 100 27 Behavior penalizedBehavior Standard administrative punishments Standard examinations technical qualification to health professional Violations related identification for non-medical Medical practitioners who conduct fetal gender gender on the basis of the baby’s needs or who termination of pregnancy Two-Child Policy to pay the fines for child bornin violation of the Failure Birth certificate fraud disturbances in a hospital, obstructing law creating Practicing medicine illegally, violations and other medical-related enforcement Non-compliance with community correction Non-compliance with and fees, withholding of tax local taxes and pay relevant to declare Failure personal income tax, etc. such as non-deductible arrears inspection infractions Tax medical insurance benefit fraud, social security and Illegal use of child labour, as ordered dishonest acts to correct and refusal to than 10 people, failure wages to more withholding or owing Unreasonably strikes petitions, over RMB 500,000, and causing group pay wages in amounts and other public incidents in inclusion in the Civil Servant Exam [Violators] that results Rule breaking Expert Exam [Violators] Database Database or the Technical Absconding while owing wages administrative punishments Bad behavior, management fees on property Being in arrears payments for low-income housing and public housing on rental Being in arrears vehicles loaded over the legal limit Passenger and freight Transportation of who have been flagged by the Bureau drivers Taxi land of forest changing the use indiscriminate deforestation, trees, Destroying land without authorization, causing forest forest without authorization, reclaiming a license negligence, and use of veterinary drugs without through fires permission,Operating an entertainment business without in or engaging publishing without permission Changing the stated use of charitable donations without notifying givers donations without stated use of charitable Changing the or public aid elderly care subsidies in information fraudulent to receive Providing by law practitioners Illegal behaviors judicial examinations during Rule breaking FIG 2.1-B: Fuzhou draft policy – Social Credit Points Subtracted for Dishonest Behavior (Individuals) Behavior for Dishonest Subtracted Points policy draft Fuzhou FIG 2.1-B: Credit – Social Responsible city dept. Responsible Forestry Bureau Forestry Radio, Television, Culture, and Sports Tourism Bureau Health and Family Planning Commission Resources and Social Resources Security Housing Authority Transportation of Bureau Bureau of Civil Affairs Bureau Justice Bureau of Finance Bureau of Human Bureau on the 42 45

In Jinan, a citizen’s score score In Jinan, a citizen’s In Anqing, jaywalking has 43 44 It’s unclear whether or not every city will It’s Are point systems going going Are point systems national? the potential to affect your credit. the potential to affect through the SCS. through can be impacted by not leashing their dog in a public place. Shanghai, for example, recently launched a Shanghai, for example, recently garbage-sorting and is penalizing scheme, non-compliant and individuals companies other in some places, local scoring pilots, governments have expanded the “no-no” localized problems. list to address Though the is fairly Fuzhou system of what we’ve seen from representative SCS localization What constitutes a “good deed”, and who of thisdecides? The nebulousness wording leaves it too open to interpretation. The concept of “good deeds” is ill- The concept of “good defined where everyone knows each other, but it’s but it’s other, everyone knows each where definitely not nationally-scalable, nor is it objective. she records in a notebook and reports to and reports in a notebook she records That kind office. bureau the local credit of thing might work in some small towns of a local “information collector”, a sweet to walkwoman whose job is the city retired and bad deeds, which out good searching A recent Vice News documentary A recent a profile in Rongcheng features scoring pilot 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System Points subtracted 50 30 30 50 10: Each payment past due for over five months, or payments past due for over 2 months that in excess of RMB 10,000. are Maximum deduction of 30 points 50 10: Each payment past due for over five months, or payments past due for over 2 months that in excess of 2,000. Maximum are total deduction of 20 points 30 2: Each payment past due for over five months, or payments past due for over 2 months that in excess of 2,000. Maximum are total deduction of 20 points 50 30 50 30 20 50 30 50 50 50 50 point deduction Legal rep: 80 point deduction Legal rep: 30 50 30 30: will be Those in serious arrears blacklisted. 28 Behavior penalizedBehavior Mailing of tobacco products over the legal amount, transport tobacco without a Mailing of tobacco products of tobacco licence, illegal sales or production on water payments Being in arrears Stealing water or damaging public water facilities Code of conduct violations by insurance practitioners Insurance fraud violations a permit materials without as operating with hazardous Serious violations such travel guide, or transport operating a tour company, Illegal activities such as tourists to make purchases deception, and forcing service without a license, during tours on bank loans Being in arrears a business, second class Untrustworthy acts by class a business, third Untrustworthy acts by fund the housing provident housing loans from on personal Being in arrears provident housing or taking fraudulent loans from from Fraudulent in withdrawal fund Violations inspection and quarantine laws and regulations of customs local taxes and fees, withholding of tax and pay relevant to declare Failure etc. such as non-deductible personal income tax, arrears [Negative] tax inspection data destruction of farmlandIllegal occupation of land for housing development, registration or transaction real estate falsified materials during Providing penalties administrative Refusal to comply with effective on electricity payments Being in arrears facilities Stealing electricity or damaging public electrical on mobile and telecom bills Being in arrears Violations in the field of market regulation Violations in the field of market fields administrative related in city management and violations Standard fields administrative and related in city management Serious violations license qualifications and other standard proper Holding a post without FIG 2.1-B: Fuzhou draft policy – Social Credit Points Subtracted for Dishonest Behavior (Individuals) Behavior for Dishonest Subtracted Points policy draft Fuzhou FIG 2.1-B: Credit – Social Responsible city dept. Responsible Insurance companies Mobile and Telecom Mobile and Telecom Suppliers of Bureau Tobacco supply Water companies Management Center of Management Center the Housing Provident Fund Customs Bureau Tax Land Resources of Bureau administrative Various organs Electricity Suppliers Bureau for Market for Market Bureau Regulation and Urban Administration Bureau Law Enforcement Safety Bureau Work Development Tourism Commission of China Bank People’s Fuzhou City Branch

There’s a data There’s 46 dictate exactly which rewards a city should dictate exactly which rewards Incentive systems Incentive Though the central government didn’t punishments for low scores are light or non- are punishments for low scores existent. level, these programs are typically almost are level, these programs and very little stick. Perks carrot, entirely and to those with high scores, offered are Cities are also playing with their own Cities are localized the versions of Unified Rewards and Punishments system. But at the city Citizen rewards and Citizen rewards punishments will eventually develop some kind of scoring system. plan to keep a record of city scores. of city scores. plan to keep a record Based on this,expect that we do most cities In other words, it doesn’t look like look the it doesn’t In other words, has immediatecentral government plans to citizens itself, but it does to issue scores field set aside in the master database for as scores citizen scocial credit recording issued by cities. in September 2019 outlinesin September 2019 all of the data fields that will in individual be included records. social credit swoop in and order all cities to adopt it. order swoop in and document released A central government It’s also unclear whether or not the central It’s willgovernment city wait to see which and then is most successful, scoring system eventually a citizen have but system, scoring things to be moving in that look direction. 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System Points added 50: national level level 30: provincial 20: city level first-class 80: merit award second-class 50: merit award thrid-class 30: merit award 50: national level level 30: provincial 20: city level 50: national level level 30: provincial 20: city level 50: national level level 20: provincial 10: city level 50: national level level 20: provincial 10: city level 10: RMB 10,000 and below first Additional 5 points for every 10,000 above the 10,000, max of 20 points. Points will be counted and will not double. together with the Red Cross 50: national level level 20: provincial 10: city level 5: county level 50 50 service first class 80: meritorious second class 50: Meritorious service class third 30: Meritorious service 80 50 30 10: service up to 50 hours 20: 50-100 hours than 100 hours 30: more 50 level) (provincial 80: bravery first-class / city level) 50: bravery second-class (prefecture (county level) 30: bravery third-class 30: bravery 29 Incentivized behavior awards Recipients of various women’s Charitable donations Charitable awards “good citizen” award Recipients of national “good citizen” award province Recipients of Jiangsu “good citizen” award Recipients of Fuzhou city City volunteers acts of honesty and found money, joy in helping others, returning Taking of one’s care work, filial piety, oneself to one’s trustworthiness, devoting and other good acts. family, and courage Acts of heroism of merit Recipients of legal and political rewards Recipients of various merit awards awards Recipients of labor and entrepreneurship Recipients of various youth awards Recipients of various volunteer awards Officials who performOfficials who a year during the course of outstanding work Party member Communist Being an exemplary who performCivil servants meritorious service FIG 2.1-C: Fuzhou draft policy – Social Credit Points Added for Trustworthy Behavior (Individuals) Behavior Trustworthy for Added Points policy draft 2.1-C: Fuzhou FIG Credit – Social Responsible city department Responsible China Charity Federation Women’s Federation Women’s Municipal Communist Youth League Committee Municipal Communist Youth Federation of Trade Unions Federation of Trade Department of the People’s Armed Forces Department of the People’s Political and Legal Affairs Commission Political and Legal Affairs Municipal Commission for Guiding Cultural and Ethical Municipal Commission Progress Organization Department Organization 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System Points added 5: third class city level 5: third 20 50: national level level 30: provincial 20: city level first-class 80: merit award second-class 50: merit award class third 30: merit award 30 20 first-class 80: merit award second-class 50: merit award class third 30: merit award 30 20 50: national level level 30: provincial 10: city level 5: county level 50: national level level 30: provincial 20: city level 10: RMB 10,000 and below 10: RMB 10,000 above the first 5 points for every 10,000 Additional of 20 points 10,000, max level 50: national level 20: provincial 20: city level together with the Civilization Points will be counted Office and will not double. 50 50: national level level 30: provincial 20: city level level 80: first class national level, first class provincial 50: second class provincial level class provincial class national level; second 30: third level level, first class city level class provincial 20: third 10: Second class city level 30 Incentivized behavior Providing important clues Providing Assisting in dealing with cases for excellence in the practice of law Recipients of awards in the field of transportation Recipients of awards Bone marrow donation Bone marrow field of education in the Recipients of awards technology awards Recipients of science and patent and innovation experts, individual entrepreneurship Technological awards Innovative Design Competition winners Recipients of various merit awards important clues Providing unusual cases in dealing with Assisting public security organs Recipients of various merit awards Charitable donations Charitable volunteer Red Cross FIG 2.1-C: Fuzhou draft policy – Social Credit Points Added for Trustworthy Behavior (Individuals) Behavior Trustworthy for Added Points policy draft 2.1-C: Fuzhou FIG Credit – Social Responsible city department Responsible Bureau of Transportation Bureau Justice Bureau Procuratorate Public Security Bureau Bureau of Education Bureau of Science and Technology Bureau Red Cross 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System 48 In Beijing, the Supreme People’s Court is working with tech giant Qihoo 360 to embarrass those included on the defaulter blacklist. “The hundreds of millions of people Qihoo 360 app the who have installed on their phones will notifications on soon receive they their screens whenever a person call or are called by District on the Chaoyang court’s blacklist. Calls with outstanding people who have parents debts, with divorced who don’t comply with child support or honor visitation rights, or with employers A few examples: Points added 50: national level 50: national level 30: provincial 20: city level 30 50: national level level 30: provincial 20: city level 10: county level 400 ml 10: Blood donation below every 200 ml beyond the first Additional 5 points for 10ML of platelets is equal to a 400ml, max of 30 points. ML. blood donation of 200 50: national level level 30: provincial 20: city level on the national level 40: Ecological preservation 20-30: Other States. In addition to its own massive network of websites and social media accounts where published, the government blacklists are also activelymaximize the seeks to social on by blacklist embarrassment brought inclusion. very powerful indeed. Citizen blacklists: naming and shaming of blacklisted individuals is The treatment the ethics of the extremely SCS get where and its applications become the fuzzy, a most Orwellian. Most citizen blacklists are kind treated and are matter of public record, in the United registry of like the sex offender 31 Though these Incentivized behavior Family” award Recipients of the “Happy platelets without compensation Donating blood or blood industry awards Recipients of various travel hunting, killing, transportation, sale, illegal Saving wildlife, reporting damage to wildlife Reporting and use of wildlife and its products; purchase habitats awards of cultural and sportsman’s Recipients Angel” award of the “Most Beautiful Recipients outlines a few of the reward outlines a few of the reward hiring and licensing, and the cumulative advantages will stack up into something and the types of perks being offered aren’t aren’t and the being offered types of perks life-changing. of the Most benefits involve city not having to pay a deposits for various and library books. services, like bike rental [FIG 2.1-D] being implemented in schemes that are China. pilot zones across not particularly minor advantages are if the central government impactful now, cities will continue to expand gets its way, will their list of perks, the concept of credit like integral to processes become more money still needs to be paid, but the payee has a little bit of extra time to pony up. Point is, at the these moment, incentive the ground, just getting off are programs FIG 2.1-C: Fuzhou draft policy – Social Credit Points Added for Trustworthy Behavior (Individuals) Behavior Trustworthy for Added Points policy draft 2.1-C: Fuzhou FIG Credit – Social 47 housing, employment, medical care housing, employment, medical care Responsible city department Responsible Forestry Bureau Forestry Tourism Development Commission Development Tourism Health and Family Planning Commission Health and Culture, Radio, Television, Tourism and Sports Bureau and Sports Tourism Radio, Television, Culture, payment deposit until after admission. This offering to allow residents with excellent to allow residents offering to waive a portion of scores social credit deposit or tuition their medical treatment refused admission to a school or hospital admission refused is too low?) the current if their social credit Some cities are is less interesting: reality While perks related to “medical care” and and to “medical care” While perks related “education” like sound they could become a matter of life and death (will people be services such as settlement, education, travel, and administrative matters. policy draft that urges regional governments regional policy draft that urges behavior by to incentivize good credit in public treatment preferential offering offer citizens with good credit, they did citizens with good credit, offer In June general direction. some provide a 2019, the released central government 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System [FIG 2.1-E] FIG 2.1-E: COURT DEFAULTER SEARCH APP DEFAULTER FIG 2.1-E: COURT court defaulter blacklist. is happening because, as This kind of stuff we’ll see in later sections, Unified Rewards just connect and Punishments doesn’t government agencies to each other, it also encourages private companies, media, industry associations and financial institutions to cooperate in the shaming and punishment of blacklisted people, thus making the dragnet ever tighter. Equally concerning is the fact that policymakers have paid too little attention 54 55 other information for each culprit on giant screens for 11 public squares at hours a day Hefei times, during peak travel reported on News Evening Wednesday. When someone rings a When someone of a ring defaulter, [instead plays: tone], this message are calling “The person you a blacklist by has been put on failing to repay the courts for urge this their debts. Please their legal person to honour obligations. Local courts in eastern took China’s Anhui province traffic of heavy advantage to 1 holiday during the May displaying shame debtors by their faces and personal information on billboards in public and televisions areas. The Shushan District Court in Hefei broadcast the photograph, name, identity and number, amount owed who refuse to pay their staff their staff to pay refuse who that a message will prompt list of on the reads: “Included individuals. dishonest Developers are even creating apps where apps where even creating Developers are is on the users can see who in their area undertook a similar initiative:undertook a similar Anhui: And from The government of Sichuan Province of Sichuan Province The government 32 Level (Individuals) for HDTV and broadband services for HDTV supplier mornings else being equal, priority will be given to those with higher social will be given else being equal, priority credit scores free. when recharging city transportation cards. up to good credit exempted up to RMB 50,000, exempted 20,000. inspections social aid housing, elder care and stand in for background checks social credit scores will Deposit-free borrowing of up to 40 library books Deposit-free borrowing Fast-tracked discharge at hospitals Fast-tracked up to 8 library books Deposit-free borrowing equipment deposits from paying installation and exemption Free utility VIP service from water meter calibration and water Free quarterly home safety inspections from electrical utility Free services administrative Fast-tracked selection processes Priority treatment in various courts Monday-Friday use of badminton and basketball Free local scenic spots at and free souvenirs bottles of water Free Ride city shared bikes without a deposit, and ride for 2 hours for without a deposit, and ride Ride city shared bikes a 6% discount enjoy Individuals with high social credit rankings loan conditions Favorable to local tourist attractions. 5-9% discounts on tickets credit hospital deposits. Excellent from paying Exemption wheelchair deposits at hospitals from paying Exempted Discounts on road tolls and public parking on road tolls and public Discounts vehicle and during annual services at hospitals “Green channel” in areas of education, employment, Preferential treatment loan applications Priority submission of bureaus, high procedures at government Simplified application all promotions or civil service positions, When applying for Party • • • • • • • • • • • • • • • • • • • • • • Benefits 50 53 49 51 52 FIG 2.1-D: Examples of benefits of Good Social Credit at Municipal the Credit Social of Good of benefits Examples FIG 2.1-D: City Xiamen Wuhu Suqian Weihai Shandong Fuzhou 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System disapproval we found we disapproval might reflect the nature of an in conducting a survey authoritarian setting – while clearly respondents were informed that that the data and to be anonymized was used for research purposes more cautious some only, have respondents may a falsified their preferences to degree due to concerns about of disapproval expressions resulting in reprisals from the confident are we state. Yet, that such an effect would be marginal not least since half of respondents (49%) of indicated strong approval SCSs, suggesting that overall public support is quite robust. Lending support for this view Overall, respondents report report respondents Overall, of approval a high degree with 80% of of SCSs, either somewhat respondents or strongly approving 19% of SCSs. Only approving the SCS respondents perceive terms (neither neutral in value while nor approve) disapprove either strong just 1% reported disapproval. or somewhat the high extent some To SCSs of degree of approval and the almost nonexistent Kostka goes on to address thepossibility Kostka goes on to address due to a fear of may be skewed that results dissent: consequences for expressing During 59 , which investigated Chinese 58 As one’s credit status is, As one’s credit plan, to according to the criterion become a central recruitment, for decisions on support grants of financial others, for a project, and gain inevitably such rules will substantial importance. Public opinion system The very notion credit of a social is enough to give many western observers within China, the But, from heebie-jeebies. is viewed in a the credit concept of social generally positive light. University of Berlin researcher In 2018, Free Genia Kostka published a study called and Public Systems Social Credit China’s Opinion: Explaining High Levels of Approval to both the national SCS response citizen’s systems. and private social credit from Chinese citizens, and these results citizens, Chinese and these results from by in-person interviews bolstered were conducted in Shanghai and Beijing. As you might expect, the paper found that varied with social credit attitudes towards socio-demographic factors, online habits, and political stance, but on the whole, overwhelmingly in favor: were results the study, 2,209 surveys were collected 2,209 surveys were the study, people’s lives. people’s puts it in her Blomberg Von As Marianne of Rule and China’s Credit paper “Social Law”: 33 ignored, the underlying social credit data the underlying social credit ignored, in based on will play a major role they’re they’re very much still and most in beta, they’re of, and unaffected unaware people remain their existence. by, misleading to say that the But still, it’s accurate take, system has no teeth.A more still early days. There is that it’s in our view, push been a concerted propaganda hasn’t much too and it’s to raise public awareness, soon to say what full-scale adoption will look like. Even if the point systems themselves remain local points systems are technically running, local points systems are 57 56

the-street interviews reveal a public ignorant of, and a public ignorant of, reveal the-street interviews apathetic about, social credit. and-control system and no one cared?” The credit and no one cared?” and-control system the article, and man-on- says bureau offices are empty, poor implementation. The opening paragraph reads, The opening paragraph poor implementation. surveillance- built a terrifying 21st century “What if you In June 2019, Bloomberg published an article calling an article calling Bloomberg published In June 2019, adoption rates and point pilot for low out Suzhou’s opinion Adoption and public and public Adoption SECTION 2.2 SECTION this lack of awareness: even in cities where even in cities where this lack of awareness: Trivium researchers visited several cities visited researchers Trivium being implemented, point pilots are where and found similar anecdotal evidence of areas with a local SCS, only 11% are aware aware with a local SCS, only 11% are areas of being part of a government pilot. A 2018 study on the gives us some topic and actual numbers in terms of awareness penetration: for those citizens who live in being shrugged off by the majority being shrugged off of citizens areas. in pilot A piece by the Economist had a similar takeaway: that the system is 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 - Special Report: Understanding China’s Social Credit System 34 teaching the government government the teaching is about what some lessons to the public. palatable We should be able to get a clearer read on read clearer should be able to get a We public the opinion in a couple of years, once timesystem has had some full to ramp up to speed. So, we don’t think that citizens Chinese So, we don’t their But opinions. afraid to express are high levels we do think that the extremely the in part, be due to may, of approval do much really fact that the SCS doesn’t even thoseyet. For most people, who are participating SCS pilot, the in a local system begin impacting their lives has yet to really in a meaningful way. 60 was canceled but not before was certificates issued by Japan certificates issued by occupation during its wartime of China. The Suining pilot criteria, with one state-run comparing the newspaper to the “good citizen” system Both residents and state media blasted it for its seemingly unfair and arbitrary The scheme was a disaster. The scheme was who maintain a circumspect who maintain a SCSs. attitude about nor disapprove) might suggest might nor disapprove) of a group of the existence 5 Chinese— ‘doubters’ — 1 in That said, the significant That said, the significant number of value-neutral approve respondents (neither interviews with citizens of with interviews confirmed ages further various levels. these high approval view that a nationwide SCS a nationwide that view be implemented. should not Our semi-structured is the fact that only 1% of 1% of that only fact is the the expressed respondents rewards and punishments system. As rewards Policy reports: Foreign In 2010, Suining county, Jiangsu launched In 2010, Suining county, for local program a social-credit-esque citizens, complete with a heavy-handed no compunction about vocally expressing no compunction vocally about expressing for similar projects. disapproval that Chinese citizens feign approval of the that Chinese citizens feign approval especially since, in the SCS out of fear, the past, general public has shown recent Like Kostka, we don’t really buy the notion really Like Kostka, we don’t 2.0 - CITIZEN SOCIAL CREDIT CITIZEN 2.0 -

Special Report: Understanding China’s Social Credit System 35

applications Financial 3 Special Report: Understanding China’s Social Credit System 63 64 65 key metric in lending and credit key if assessment. In other words, has been a person or company the State, banks blacklisted by refuse to issue and lenders may may loans or credit cards, or they loan conditions offer unfavorable 66 access to service: Banks may agree to freeze assets of Unified Punishment targets. history, such as user repayment back to the social credit system. Using social credit data as a accounts or restricting Freezing Passing financial information, • • • The exact details of these agreements The exact details of these agreements But it looks like financial a little murky. are participating in the SCS by: institutions are supplementingdata with financial serve yet data might one day behavioral another combined with purpose: predictive algorithms,this may allow behavioral info of not only get a solidlenders to picture paid theirhow one has bills in the past, but system thatto have an early warning signals when they so might be at risk for not doing in the future. a long way from Of course, China’s achieving that goal, but the work on it 2016, when around got started in earnest likemajor state-owned banks, ICBC, China Construction Bank, and National as wellDevelopment Bank, as titans of began agencies, reporting credit and fintech with data-sharing agreements to sign credit the central government. a wider pool of information from which to build credit reports on the 65% of the population who are still “credit invisible”. both the practical ability to repay ability to repay both the practical enough money), loans (i.e. having and a desire and willingness a sense of to do so (i.e. having responsibility). looking at loan both of these by history. repayment complete picture, particularly of gathering the second element, by data from a broader set of sources. an assessment due data to make this history, to a lack of borrowing supplementary data can stand in as a risk assessment, providing Financial credit is a measure of Financial credit is a get a partial picture of can You can get a much more But you Where there isn’t enough financial • • • • So, in this sense, social credit and financial So, in this credit sense, social two halves of the same coin. are credit hope that Chinese regulators of collateral or credit history? of collateral or credit the days of early The think pieces from show us that China’s when social credit thought leaders sat down to tackle this issue, they came to a few basic conclusions: and relatives instead of banks, thoseinstead of loans and relatives and record, up on any credit show don’t built, history is leaving everyone no credit they So how do banks started. right where get the data they seed make need to lendinginformed decisions in the absence 36 That stands 61 62 This inability to obtain bank loans leads to a friends from vicious cycle: individuals borrow to get financing. for Similar dynamics make it difficult individual and the households, family micro- businesses they to obtain loans: operate, has Bank of China though the People’s individuals data on been collecting credit for nearly a decade, only 35% of Chinese record. citizens have a credit in stark contrast to countries like the about 80% of citizens have a USA, where history. trackable credit good at assessing credit risk on the basis good at assessing credit business outlook, and profits, of revenues, pressed hard those SMEs are history, credit

creditworthiness is a tool that China’s financial creditworthiness need. institutions desperately lack of a credit history for the majority of companies history for the majority lack of a credit to assess in China, a basic system and individuals system was originally designed primarily as a tool to designed primarily originally was system the risk. Given bread-and-butter credit better assess With all the focus placed on the behavioral aspects focus placed on the behavioral With all the to forget that the it can be easy of social credit, Financial credit Financial SECTION 3.1 SECTION to secure loans, and since the banks are not loans, and since the banks are to secure In contrast, SMEs rarely have many hard have many hard In contrast, SMEs rarely to banks in order assets that they can offer (SOEs), since they’re able to provide able to provide (SOEs), since they’re an abundance of collateral in the form of land and big buildings. of that deficiency is that bank loans perpetually get funnelled to state-owned enterprises inefficient reliably determine creditworthiness, determine creditworthiness, reliably especially for small and medium enterprises. The practical outcome That’s partially lack because banks That’s they need to records the credit China’s banking system doesn’t banking system doesn’t China’s allocate loans very efficiently. 3.0 - FINANCIAL APPLICATIONS FINANCIAL 3.0 - Special Report: Understanding China’s Social Credit System It remains to be seen It remains 71 70 Notes Controlled by PBoC Controlled big One of China’s internet giants Owned by Alibaba Stake 36% 8% 8% 8% 8% 8% 8% 8% 8% approval to operate. approval Baihang willBaihang in parallel operate with the While this Center. Reference Credit PBoC’s is a vast oversimplification, it basically looks for reports like the will PBoC handle credit traditional loans, loans (mortgages, auto will loans), while Baihang and business tackle non-traditional lending. start. After to a rolling The company is off its formation, Baihang began signing data- with a whole host of sharing agreements who service providers, consumer financial will access Baihang data to make credit put thechecks. Recent counts number of signers at over 700. issuing less restrictive The PBoC has been agencies. As of licenses credit to enterprise June 2019, over 130 agencies had received if one of more of these agencies will come if one of more to dominate this like space, Equifax and have done in the West. TransUnion

69 68 FIG 3.1-A: Baihang Credit shareholders FIG 3.1-A: Baihang Credit Shareholder Qianhai Credit Pengyuan Credit Huadao Credit Zhongzhicheng Credit Zhongcheng Credit Kaola Credit National Internet Finance Association (NIFA) Credit Tencent Sesame Credit New credit rating agencies credit rating New has changed The fintech explosion the regulators world of finance. Chinese the need for new credit have recognized mechanisms to serve online reporting platforms, P2P finance and micro-lenders, other lending innovators. After a few abortive fits and starts, in 2018, the PBoC oversaw the formation of a new called Baihang Credit. rating bureau credit rating credit Baihang is the only commercial on reports agency licensedissue credit to primarily individuals,shareholders and its online lending giants. consist of China’s According to an August 1, 2019 circular 1, 2019 circular an August to According theissued by State Council, all these of by the end questions should be answered mechanism reporting the2020, when credit to be standardized. is scheduled 37 utility payment arrears utility payment (which might include being a state agency) blacklisted by order to take out more loans, then then more loans, out to take order remarry. A history of unpaid around longer: on credit to stay debts used after the years reports for two stick they debt is cleared, now around for five. couples who get fake divorces in divorces fake who get couples Awards & honors Awards Detailed history of telecom and Detailed history of Unpaid taxes Civil and criminal case records punishments Administrative history Welfare Professional qualifications Non-payment records stick records Non-payment • • • • • • • • We also don’t know if the new PBoC credit know if the new PBoC credit also don’t We or grades. scores will include credit reports Where will the PBoC suddenly get all that Where know for sure, we don’t new data? Well, exactly the type of but we do know that’s in the central social information stored have a database. So while we don’t credit connecting personal credit definitive source Information to the National Credit records Sharing Platform do, by all (if you means get suspect a link. in touch), we strongly Most interestingly for our purposes here, for our purposes here, Most interestingly will also though, is that the expanded report on individuals:include some new data 67 金融信用信息基础 ), which consolidates data submitted intended to clamp down on intended to clamp down interconnected: This is likely interconnected: This is likely primary mobile number may be primary mobile number may in a potentially unstable living be committing situation, or may fraud. 5 registered phone numbers, the idea being that someone who often changes their number history: New reports number history: New person’s last the will display reports. social credit information on credit on credit credit information social Spousal credit is more Longer record of mobile phone Including blacklist and other and blacklist Including • • • and help lenders paint a better picture of a and help lenders paint a better picture financial situation. The biggest borrower’s are: changes in the new report credit report, which will close certain report, credit allowed loopholes which had previously to manipulate lending outcomes, borrowers primarily contain financial data, but in May primarily contain financial data, but in 2019, the the PBoC announced impending a second-generation of personal release 数据库 by financial institutions and other parties. reports individual credit Up until now, based on information stored in the PBoC’s in the PBoC’s based on information stored Information own National Financial Credit Foundational Database ( reports on individuals and enterprises. reports the issued through are reports Credit and they’re Center, Reference Credit bank’s Since the early 2000’s, the PBoC has issued Since the early 2000’s, authoritative most financial credit China’s Credit reporting Credit 3.0 - FINANCIAL APPLICATIONS FINANCIAL 3.0 -

Special Report: Understanding China’s Social Credit System 38

applications Political 4 Special Report: Understanding China’s Social Credit System Fear

74 Those living in corrupt 75 When things get bad enough, local Lack of transparency Lack Inability to attract investment: International and companies companies unwilling other parts of China are from to participateunstable business in an environment. Lack of public trust: faith lose in the rule of law and in the areas ability of their leaders to govern. take risks: Local companies don’t that the rules will suddenly change leads caution extreme local companies to exercise in when making business decisions, which turn hampers economic growth. leadership what China’s These issues are is aiming to solve via the SCS by using big the behavior of data to track and measure city governments, state agencies, and civil servants. Regional governments often fail to publicize often fail Regional governments information that to all, should be open fail for theto open channels public submit to feedback, and otherwise opaquely. operate Procurement corruption decisions as use procurement Local officials a tool to line their pockets, or parcel own to contractors with whom they out projects personally close. are to a series of problems Such issues have led namely: the business environment, affecting Bad PR: or lodge complaints with the citizens protest national which can lead to bad government, publicity and PR incidents. ). 政务诚信 73 with equivocation, subtle resistance, or with equivocation, subtle resistance, rather than concrete responsibility-shifting, follow-through. up debt Racking Regional governments often abuse their privileged position to take out loans which unpaid, or engage contractors who remain uncompensated. remain officials, clamp down on corruption, tighten officials, policy and increase internal supervision, governments. in regional enforcement problems Key SCS policy and think pieces specifically outline phenomena that a few common believe point to a general lack of officials ( affairs” “integrity in government on old officials don’t deliver New contracts promises takes office, When a new official have a made by their predecessors tendency to fall by the wayside as budgets adjusted, and priorities are reallocated are leading continuity to a lack of and stability in governance. Half-hearted implementation of policy may pay lip Though some local officials service to supporting central government policies, in practice, implementation is met And that’s where the pillar final of the where And that’s is aiming in. The government SCS comes not only at cannon the credit social individuals also at and enterprises, but itself. the It views SCS as a political tool power over to extend Beijing’s designed 39 72 economy, has been stunted by widespread has been stunted by widespread economy, dishonesty. bureaucratic has often expressed that “power should be has often expressed by the cage of regulations”. restricted How much of that is authentic sentiment part and how much is a convenient on Xi’s on which to hang political rivals scaffold is up for debate; since assuming the Xi has certainly done his fair presidency, stringing up the of opposition in the share But most name of anti-corruption efforts. signs indicate that Xi genuinely believes development, and specifically China’s the development of the socialist market Xi Jinping has prioritized the consolidation since his first days of top-down control on the the job. He has overseen longest- running, widest-ranging anti-corruption He has also campaign in Party history. championed a rule by law platform, and

“The mountains are high, and the emperor is far away.” is far away.” are high, and the emperor “The mountains – Chinese proverb background internal affairs: some affairs: internal Social credit and credit and Social SECTION 4.1 SECTION a tight leash. closely knit than in the past, but many of the still persist, and Beijing still old problems governments on struggles to keep regional Modern technologies (and a ton of have made China more infrastructure) ignored or flouted imperial directives, or flouted imperial directives, ignored forming pockets of lawlessness, corruption, and outright opposition. its officials since dynastic times. The its officials in far-flung is full of officials historical record who, knowing themselves to be provinces power, of Beijing’s safely beyond the reach The headaches arising from attempting The headaches arising from such a massive policy across to enforce geography and population have plagued blindingly obvious: China’s a big blindingly obvious: China’s place, and a lot of people live there. If you’ll forgive us for stating the If you’ll forgive 4.0 - POLITICAL APPLICATIONS POLITICAL 4.0 - Special Report: Understanding China’s Social Credit System : Assessments 613 What they contribute might Misc. Records on government Records and personnel departments legal action taken that have had against them of disciplinary actions Records meted out to or awards government employees Personnel files on government employees of any time have records Would had a member of the public a submitted an appeal against decision government body’s Public feedback and criticism : Disciplinary records Assessments Considering that make up “assessments” the majority of the datasets on government we wanted to get a clearer integrity, understanding is conducting of who those assessments, and what metrics they’re evaluating. 418 database [FIG What it is government affairs Misc. Shanghai’s local legal local legal Shanghai’s system Manages internal affairs Oversees civil servants legal Provides advice and helps craft administrative laws that govern the behavior of government bodies public Takes complaints on [FIG 4.2-A] : Appeals of gov decisions 145 : Accountability 85 : Legal judgements 26 : Administrative punishments FIG 4.2-A: Who’s contributing to the government Shanghai credit social Who’s FIG 4.2-A: : Other : Honors and awards 9 13 3 Data source National Supervisory Commission Civil State Administration of Service office Legal affairs 12345 Hotline Other ministries and district govs City courts FIG 4.2-B: NUMBER OF DATASETS IN SHANGHAI GOVERNMENT INTEGRITY DATABASE BY CATEGORY GOVERNMENT INTEGRITY DATABASE IN SHANGHAI FIG 4.2-B: NUMBER OF DATASETS We also know generally also what categories of We data the Shanghai database will store. comes from, we do not know what data they comes from, submitting, and can only make educated are each guesses about exactly which records agency might contribute. 4.2-B] 40

78 79 77 While we know which agencies the data Shanghai is creating a government integrity Shanghai is creating based on the structure database that’s of the SCS for citizens and businesses, in the sense that it consolidates information state bodies. But instead numerous from of gathering information on people and enterprises, it gathers information on government employees and state bodies. And instead of gathering information from it agencies involved in market regulation, agencies involved gathers information from in internal affairs. gathered at the national But we do level. gathered that clearly maps out how have one source Shanghai. in this information is gathered systems credit social Since the lower-level the national system, level typically mirror a look at the model gives us the Shanghai of how government integrity picture clearest nationwide. data is likely to be gathered 76

basis for assessment, reward basis for assessment, reward and punishment. law and [lying by] omission and [lying by] law should be included in these and records according to law regulations, and used as the Bad behavior such as Bad behavior the perverting favoritism, on the evaluation block, too. on the evaluation Businesses and citizens aren’t the only targets of the citizens aren’t the only Businesses and bodies are agents and government system: social credit government Collecting data on data Collecting SECTION 4.2 SECTION exactly how government data will be other legal professionals. few specifics on are Beyond that, there Mention of setting was also made up special to collect data on lawyers, judges, archives public notaries and security personnel, records of government entities and records officials: The landmark 2014 policy on social touched briefly on what data credit would be included in social credit 4.0 - POLITICAL APPLICATIONS POLITICAL 4.0 - Special Report: Understanding China’s Social Credit System 85 Government grading systems grading Government that few hints dropped have been a There letter- bodiesgovernment might receive grades (potentiallybased integrity ranging like AAA-D), just the compliance from by some state grades given to companies yet seen this agencies, but we haven’t confirmed in policy documents, so whether or not this will is still happen up in the air. 84 83 Equally interesting is the of public inclusion Equally interesting opinion data as an evaluation metric. Public feedback on government behavior a dedicated complaint through is gathered hotline, and also assessed by looking at lodged against government formal protests decisions. of Zhongdaxin Credit, another approved anotherapproved of Zhongdaxin Credit, evaluation government credit third-party by Lin Junyue, which was founded company, is the man credited who you may remember theory. with the invention of social credit involved in assessing Zhongdaxin has been government compliance in regional systems and getting new data transparency up and running, and setting up procedures internal evaluation mechanisms. is that the people in The point here these of assessments can hardly charge impartial observers. Their be considered with the government close relationship is not particularly incriminating, nor does it completely nullify the validity of the that there’s it is a reminder but reports, very little separation between the public sector and the sector in China, and private evaluations of truly objective “third-party” unlikely. government are Other metrics is owned by a couple of holding of by a couple is owned companies, with is owned by a man one of which close ties of the (a member to government CPPCC). Guizhou municipal is the case interesting more Perhaps even 41 public opinion on government public opinion on government activities dishonesty that attract media attention administrative integrity internally administrative administrative data administrative terms of implementing policies integrity to foster is taking the initiative government channels for channels government and responding to collecting and complaints public feedback legal towards “social consensus administration” General positive vs. negative vs. negative General positive government Incidents involving Taking the initiative to publicize to publicize the initiative Taking promises to the public Keeping promises to higher-ups in Keeping Internal focus on government Whether or not the government Usability and efficiency of and efficiency Usability enforcement Supervision of law of a The gradual formation • • • • • • • • • • have to be completely impartial, and that’s have to be completely impartial, and that’s things get murky: Zhongding Credit where 5. Public opinion to carry Of course, for these of reports types evaluator would weight, the third-party real 4. Honoring agreements 2. Utilizing new media resources media new 2. Utilizing 3. Compliance 82 80 81 and launching county level and launching county level to push out websites government public information Diligence in constructing across various regions and across various departments. research institutes to carry out assessments and integrity rate government Support third-party Support third-party as institutions, such services, credit evaluation and scientific universities, • 1. Transparency Regional governments were assessed along Regional governments were five primary metrics: cooperation with some of China’s top top cooperation with some of China’s its second annual universities — released evaluating 2,794 county-level report 30 provinces. governments across Some of those third-party appraisals Some of those third-party taken place. In June 2019, have already Rating — in Service Zhongding Credit Affairs”, the State Council expresses an the State Council expresses Affairs”, intention to: In the 2016 policy “Guiding Opinions on Integrity in Government Strengthening government, and “third-party assessments”, assessments”, and “third-party government, called in to do are outside sources where and reporting. research assessments willassessments “self- be conducted: higher levels assessment”, wherein auditof government of lower levels Social credit policies government on credit Social integrity indicate that of two types 4.0 - POLITICAL APPLICATIONS POLITICAL 4.0 - Special Report: Understanding China’s Social Credit System government dishonesty shall be dishonesty shall government with in accordance investigated the law.” or its personnel will government be publicized on the regional credit website. dishonesty will not be considered for promotion. Breaches of trust by the Breaches of trust by Officials with a record of • • 42 and required to provide public and required to provide (self-)criticism. The principal person responsible for the act of committed by the government the government committed by the incident shall be level, at any in writing, and quickly explained rectified according to the amount of financial loss and damage government caused. The involved also be barred departments may and honors, from receiving awards “When dishonest acts are According to Sixth Tone’s Tone’s According to Sixth sister publication, The Paper, more than 20 county-level been have governments blacklisted as “dishonest” reasons, including for various compensations refusing to pay and defaulting on construction projects. • Other penalties, as laid out in various equally similar to policy documents, are the penalties applied to businesses and individual citizens: 87

86

star-rated hotels or trips by star-rated hotels or trips by train or plane. head and other high-level head and other high-level officials will face government book restrictions when they County government to a list County government of “dishonest” debtors — which means that the county … [One] document, dated March 21, is allegedly a court’s decision to add the Fengxin a company more than 300 a company million yuan ($43.5 million) in unpaid debts. county government in eastern county government China has been blacklisted as “dishonest” because it owes Two alleged court documents Two circulating online claim that a Surprising as it may sound, local governments and government officials can get government and sound, local governments it may Surprising as else. everyone just like named, shamed, and investigated blacklisted, government Rewards and punishments for and punishments Rewards SECTION 4.3 SECTION And that wasn’t an isolated occasion: And that wasn’t Sixth Tone profiled one such profiled Sixth Tone incident in back in 2017: 4.0 - POLITICAL APPLICATIONS POLITICAL 4.0 -

Special Report: Understanding China’s Social Credit System 43

Big tech 5 Special Report: Understanding China’s Social Credit System , 95 What Social Credit Isn’t What Social Credit The hundreds of millions of of of millions hundreds The the Qihoo who have people installed on their 360 app will soon receive phones on their screens notifications call or are they whenever the a person on called by District court’s Chaoyang with people blacklist. Calls outstanding debts, who have parents who with divorced child don’t comply with visitation support or honor employers rights, or with their staff pay who refuse to that will prompt a message on the list of reads: “Included dishonest individuals. CTrip, China’s premier online travel portal premier China’s CTrip, (kind of like Expedia), also signed a with the NDRC, cooperative agreement to encourage the travel service agreeing on its platform to issue public providers to act in letters” promising promise “credit best interest. good faith and in the public’s These letters would then be published on various government-run social credit- focused websites. Sesame Credit In our section on we spent a little time talking about the between the national SCS and difference mentioned systems. We private social credit of private SCS in dozens are that there China. One of these in particular a deserves closer look. 94 89 90 91 92 93 88 As of December 17, 2015, As of December 17, through its credit platform, [Alibaba] has restricted more people from than 130,000 cars, renting tickets, air buying taking out loans and so on. As we mentioned a little earlier, Qihoo 360s As we mentioned little a earlier, involvement has extended to assisting the government in naming and shaming Beijing on the court defaulter blacklist: residents network security giant Qihoo 360, Tencent’s network security giant Qihoo 360, Tencent’s bike sharing platform Mobike WeBank, by Meituan Dianping), acquired (recently and many others. Leveraging these interconnected channels, Leveraging these interconnected signing two-way these platforms are with the central data-sharing agreements services to restrict government, promising to users that have been blacklisted by the making them from state, and preventing certain kinds or taking out certain purchases of loans. with the Alibaba, who signed an agreement in 2015, is one such Court People’s Supreme users who appear on It restricts company. engaging the court defaulter blacklist from in luxury consumption via its ecommerce platforms: Other participating big tech companies in and Punishments” include “Unified Rewards Jingdong Finance, Suning Electronics, offers onboard micro-lending services and and services micro-lending onboard offers is both accounts. Jingdong investment platform specializing in an ecommerce also operates a financial and it electronics, Jingdong Finance. through services wing 44 TMall, as well as one of China’s most TMall, as well as one of China’s which in turn popular digital wallets, Alipay, private tech platforms are participating in private tech platforms are system, particularly in the the social credit fintech and ecommerce. of areas to tease the concepts a little difficult It’s apart, because of fintech and ecommerce players major ecommerce many of China’s biggest online lenders, and also China’s are they services platforms operate financial in tandem with their online marketplaces. Alibaba it runs China’s is a key example: and biggest shopping portals, Taobao purchase online), and social media data purchase will (like in chat rooms), what people say into the national social credit feed directly a black mark on get won’t database. You However, for buying cigarettes. your record involved in social credit. involved in social credit. isn’t

companies – especially tech platforms – will be especially tech platforms companies – into the social credit system. incorporated One of the most fascinating issues surrounding fascinating issues One of the most data from private is whether or not user social credit social credit social Tech platforms and platforms and Tech SECTION 5.1 SECTION shopping data (like what items people That is to say: We haven’t found any haven’t That is to say: We evidence to suggest that behavioral Ironically, that might be the only way that Ironically, big tech words to the user’s social credit social credit the to user’s words automatically file, and are they punished. records on social media will be records assessed by an algorithm which connects those flags banned words, customers’ shopping histories, and customers’ shopping histories, and citizens will be judged according Or maybe chat to what they buy. like Taobao and TMall might like Taobao the government with provide The fear is that online marketplaces 5.0 - BIG TECH 5.0 - Special Report: Understanding China’s Social Credit System 98 three or four years. or four three continuously improved, the continuously improved, of punishment for coverage breach of trust is expanded, and the role of big data platforms is brought into play. [create an will we Together, environment in which] “one act of dishonesty will lead to restrictions from all sides”. Through the use of different Through the use application scenarios finance, such as consumer and public financial leasing Ant utilities services, market- Financial will offer for oriented incentives as as well the trustworthy for differential restrictions In this the untrustworthy. of for the convenience way, is individuals trustworthy In 2016, Alibaba signed anotherdata- withsharing MOU the central government, its involvement in to expand promising meting penalties out and perks: These types of agreements, we believe, are we believe, are These types of agreements, only theof a slow integration beginning between the the SCS and world of and digital payment. ecommerce Data Privacy data privacy laws At the moment, China’s rather weak. And though the policies on are have paid significant lip service social credit personal to the concept of protecting 97 place great importance on via the punishments delivered platform. More than 5,300 [of these] paid off court defaulters have their debts. Among them, more who those than 1500 were for payment had been evading According to Sesame Credit statistics, court defaulters open Sesame Credit 12 times more often than other users, which indicates that they the Sesame Credit scoring system up as scoring system the Sesame Credit a solution to these trust issues. consumer like why some Chinese apps — That’s home sharing and second-hand markets, even some dating apps — display users’ publicly of as part scores Sesame Credit their user profiles. is so visible Because Sesame Credit have many reports and widely-adopted, with the national confused Sesame Credit But very different. SCS. The two things are of overlap. areas some weird are there For example, Alibaba cooperated in the and Punishments system Unified Rewards scores to lower Sesame Credit by agreed on the court for those appeared users who defaulter blacklist, a move which they claim these users to pay up: spurred Fraud and counterfeitingFraud in so rampant is very wary of being China that consumers are especiallyscammed, in P2P marketplaces. its has so much data on Because Ali already includingown users, financial information up it has offered behavior, and shopping 45 Choosing not 96 a national conundrum: namely, the lack of a national conundrum: namely, trust between buyers and sellers online. to use Alipay of like is kind opting out of you can. Some people do. Facebook. Sure, to shop online, But doing so makes it harder and utility bills, money. and transfer pay rent Because Alipay many is so ubiquitous, have a Sesame Chinese people already And Alibaba has begun to score. Credit popularity to try to solve leverage the app’s technically optional to use, Alipay is one of are the in China — there most popular apps over 1 billion— and there users currently many alternatives. aren’t this feedback influence consumer loop to Sesame decisions, making purchasing weapon of market competition. a Credit with our use Though some might disagree we call this“social” a of the term here, system because it takes some credit social metrics into account, like how many connections in the you have Alibaba network, and if you make charitable Alipay. donations through like all SCS, is private While Sesame Credit, score of over 650 can pay by installment650 can pay of over score shopping on Alibaba’s for some items Alibaba-owned shared platforms, or rent bicycles without paying a deposit. system is kind of likeThe whole feedback a and behaving loop: using Alibaba products well on Alibaba platforms raises your which gets you more score, Sesame Credit use Alibabaperks, so you want to products raises your and using Ali products more, so you get some more, score Sesame Credit perks… you get the idea. Ali can use more For example, users with a Sesame Credit withFor example, users a Sesame Credit But it does mean you get access to perks But it does mean you on the apps in treatment and preferential ecosystem. Alibaba’s Alipay. A high Sesame Credit score doesn’t doesn’t score Sesame Credit A high Alipay. or net you dictate your place in society, the city government. any benefits from services subsidiary, Ant Financial. It’s called Ant Financial. It’s services subsidiary, to it assigns scores and “Sesame Credit”, digital wallet, who uses Alibaba’s everyone The most well-knownThe most widely-adopted and financial is owned by Alibaba’s private SCS 5.0 - BIG TECH 5.0 - Special Report: Understanding China’s Social Credit System 46 Almost all of this relates to corporations, allAlmost of this relates tell, what we can rather than citizens. From personal social the only time an individual’s information made public is is when credit or blacklist, in they’ve placed on a red been theirwhich case name, part of their national cases, details of and in some ID number, shown. are their offense, 99 100 to law. relevant units and personnel units relevant shall be strictly investigated and held responsible according to prevent information leaks. information to prevent intentionally or those who For personal disclose mistakenly information, the privacy and improve the registration the registration and improve the use for system and review and of personal information, procedures for the querying of procedures for protect personal information, establish database security, Protect personal privacy. privacy. Protect personal and Clarify the rights data categories listed in the document, classified as open to the about 75% of are public. government sharing only”. of the 400 As we mentioned our intro, in national social credit database is classified national social credit as “publicly which data is available”, and which is “for classified as “restricted” citizens from the prying eyes of the state. citizens from One central government document from 2016 outlines exactly which data in the focused on protecting data from corporate corporate data from focused on protecting and misuse, unauthorized disclosure scammers, and not so much on protecting These vaguely-worded policies are more more policies are These vaguely-worded specific. to: regulators A 2017 policy urges information, corporate trade secrets and information, secrets trade corporate very the isn’t language state secrets, 5.0 - BIG TECH 5.0 -

Special Report: Understanding China’s Social Credit System 47

Analysis 6 Special Report: Understanding China’s Social Credit System inherently trustworthy— more as confidence, and the corresponding trustworthiness as compliance. In another sense, we’re reducing trust to consistency or predictability. trust her based on character character on her based trust trust her can we alone. But can trust We future actions. run red lights, won’t that she from us, or cheat or steal if know don’t We on tests. desire to she has a secret our take run red lights or really don’t and we money, we Rather, care if she does. to that she is likely know most social norms follow of acceptable behavior because the consequences norms are of breaking these can think of this high. You that people kind of trust— in a trustworthy will behave are not if they manner even On the one hand, the idea that the social system would artificially increase credit levels of “intentionaltrust” comes across as the naive paternalism same kind of that in the Cultural Revolution. ushered On the other hand, while the SCS may not the actual underlying social issues, address a higher it does have the potential to create in level of consistency and predictability In other words, the business environment. faith in market actors may not have more intentions, but they can have each other’s . Liars and Outliers those intentions. The second is less intimate, what sociologist Susan Shapiro calls impersonal don’t know trust. When we don’t know someone, we enough about her, or her to underlying motivations, When we trust people, we can trust people, we When we either trust their intentions or their actions. The first is say more intimate. When we trust a friend, that trust we particular isn’t tied to any thing he’s doing. It’s a general the reliance that, whatever situation, he’ll do the right thing: that he’s trustworthy. trust the friend’s We that his intentions, and know actions will be informed by of scaffold on which a genuine culture of culture on which a genuine of scaffold But none of those sources trust can grow. do a particularly good job of defining what “trust” actually means. as many definitions of trust as are There and sociologists, psychologists are there think we security here, but for our purposes Snieder has a good take technologist Bruce on the topic in his book two distinct trust down into Sneider breaks types: Artificial creation of “trust” of creation Artificial the earliest think pieces on social From credit social to the most recent credit the express sources Chinese regulations, a sort hope that the will SCS create Party’s 48

nor does it appear to be a key element of the SCS political agenda. in Xinjiang, complete with the collection is a its residents, of biometric data from particularly chilling warning. not at all difficult With all this in mind, it’s people ordinary where to envision a future record marks on their black credit receive for sending a sensitive text message or communicating with “politically unreliable get a bump for persons” or conversely, state media. sharing an article from But at the moment, that is not happening, Coopting technology to enforce political Coopting to enforce technology orthodoxy not be out of would also character for the Communist Chinese access to huge Beijing has shut off Party. it with swaths of the internet and replaced information ecosystem that a homegrown allows its citizens it to monitor and control online political discourse. The techno- surveillance state that has been created

world of social credit, but we’d like to take a moment a moment take to like we’d of social credit, but world obvious flaws. more system’s the to explore Our goal throughout this report has been to present a this report has Our goal throughout into the China’s foray of view even-handed factual and Problems Problems SECTION 6.1 SECTION more than 1 billion Chinese citizens. more provide the government with vast amounts provide of systematized data, allowing the Party to of put together detailed personal profiles future. system will the social credit Fully realized, hands of the state, and we would Chinese not to mention that it very easily be remiss sinister uses in the could be put to more directly at mandating political conformity directly at its most or silencing dissent. However, fundamental level, the SCS is an extremely tool in the powerful extra-legal enforcement In the course of our research, we have found we have In the research, course of our evidence that the is aimed SCS no credible Let’s dive right in and address the elephant dive right in and address Let’s in the room. The potential for human rights abuse The potential for human rights abuse exists The issues 6.0 - ANALYSIS 6.0 - Special Report: Understanding China’s Social Credit System Social Credit and the Rule Social Credit is an excellent piece on the topic, as we touched on in earlier sections, optimized to gather data are bureaucracies about our violations,not about our good also partly because the incentives deeds. It’s outweighed far to do exceptionally well are up by the incentives to simply not screw This means that even if the SCS too badly. as a market achieves maximum effectiveness an still unlikely to inspire tool, it’s regulatory of excellence. culture organic to game the a way There’s always system China has elevated the gaming of of high government systems into the realm unlikely that the SCS will be art, and it’s an exception. If the SCS becomes deeply this very well may embedded in society, give rise to a cottage industry dedicated records. of credit to the false improvement And if the system is built in such a way that Others that out have pointed the is SCS operatingextra-legal, in parallelwith (but the justice so system, and from) separately be redressed really unfair blacklisting can’t the court system. through not particularly not lawyers, so we’re are We qualified to give a lengthy discourse on the But if you’re ins and outs of blacklist legality. Mariane in exploring this further, interested Blomberg’s Von of Law online. and is available for free focuses on punishments, The system rather than rewards The SCS is a very big stick attached to a This is partially because, very small carrot. 106 105 system mechanisms Blacklist-worthy behaviors Blacklist-worthy The blacklisting and punishments The use of social credit scoring • • • Other raised issues with academics have the to the law. relationship blacklisting system’s that blacklisting itself Some have argued a state of double is unfair in that it creates the violator is penalized where jeopardy, and then penalized again for the legally, via the blacklist system. same offense which it’s difficult or tedious to extract difficult which it’s oneself. If things continue in this vein, the central government will need to step in and better the development of blacklists to regulate to an out-of- proliferate they don’t ensure to not used extent, and that theyare control arbitrary rules. enforce The good news is that the central of the potential government is very aware In an August 2019 interview, pitfall here. outlined NDRC spokesperson Meng Wei the focus on preventing the government’s of: over-expansion Blacklisting is extra-legal Another possible problem with thesheer Another problem possible is that blacklistsvolume of being produced it opens the blacklist door for too much theoverlap, and possibility on” of a “pile on one blacklist being placed where effect of blacklisting in a cascade from results 49 101 The suggestionwidely was 104 102 103 standardized or regulated, and that some or regulated, standardized penalizingbehavior that of the blacklists are illegal. isn’t they tend to be. Painting the national functioningSCS as a flawlessly of weapon is, at this stage, technocratic state control too much credit. giving the project There are a whole lot of blacklists happy about the way the Not everyone’s blacklist out. Chinese system is shaking academics and journalists have voiced being concerns that blacklists too many are willy-nilly by too many different created not appropriately that they’re organizations, natural resources, environmental protection, protection, environmental resources, natural health agriculture, training, staff government plan to they don’t … the list of where care be shorter. use it might carried away with we get But before systems visions of facial recognition livesgum for chewing ruining people’s bear in mind that the let’s on the subway, bureaucrats. people building thisthing are ever worked on a technical Anyone who’s for any government project infrastructure mess a catastrophic or MNC knows what contracts are protected by law. protected contracts are An interesting example of this happened at An interesting a public in April 2019, when Ge symposium of the Department Ping’an, deputy director and Social Security of Human Resources announced plans to in Zhejiang Province use the “malicious, SCS to punish frequent job-hoppers.” condemned online, with netizens pointing out that workers’ right to terminate labor ecommerce, online fraud, judicial services, ecommerce, security management, traffic management, security management, traffic quality supervision, safety, production analysis, credit traceability, product monitoring, risk forecasting, reporting reporting monitoring, risk forecasting, and complaint mechanisms, corporate tax payments, social solvency projections, policy outlining their intentions to use big of data and cloud computing in the areas information gathering and sharing, statistical and there is every indicationthat the and there government intends to do so. a In 2015, the released State Council forever. There’s plenty of time for upgrading There’s forever. and the integration of fancy technology after all the basic components come online, are buggy and difficult to use. and difficult buggy are not to say the system will stay janky That’s could-based AI, but is entered manually could-based AI, but is entered Several of the or via Excel spreadsheets. tools public-facing and search SCS websites cameras and data scraping bots, but cameras and data scraping plain old database consolidation through thetechniques. Much of new information not by a cutting-edge, is being gathered pretty low-tech. The master database is low-tech. pretty by a sophisticatednot yet being populated network of facial recognition-enabled technologies to collect and analyse SCS lofty ambitions in data. But for all China’s as it stands, the is actually SCS this area, Much has been said about social credit’s about social credit’s Much has been said potential to leverage next-generation The integration of future tech is still of future The integration in the future confidence that others are incentivized to confidence othersthat are behave honestly. 6.0 - ANALYSIS 6.0 - Special Report: Understanding China’s Social Credit System market values would make a significant a significant make values would market in the short term. difference it is: the SCS is the Chinese here Well, social attempt restructure to government’s values in theand market possible shortest is being time. And all this too often, effort reactions knee-jerk heavily criticized through or misconstrued on the basis of erroneous information. conversation to productive Perhaps a more its business improve have is how China can without simultaneously environment infringing on the rights and privacy of its citizens. for decades. The lack of adherence to for decades. The lack of adherence have and weak enforcement regulations business community frustrated the foreign as long as they operating have been in the But some of these Chinese market. so deeply ingrained in the behaviors are such a “normal” and are fabric of society, that nothing short part of business culture, of social and of a complete restructuring get easier access to bank loans, and lenders get easier access to can feel confident that their lending risk is mitigated. question timeline is, which is So the real probably of course, coming? The answer, in the middle. lies somewhere say that of the no aspect dark can’t We timeline will come to fruition. But we do trying to aren’t know that Chinese regulators steer thethat car down road. The SCS is attempting to solve legitimate problems While criticism of the SCS is warranted, are that there we should also remember that this is system legitimate problems attempting to solve. China has been raked over the coals for rampant corruption government, rampant in counterfeiting violations, and IP lack of accountability in the business environment, for the rule of law and flagrant disregard The improved interconnection between between interconnection The improved in departments results government bureaucratic and less efficiency increased mess. to can use their scores Individual borrowers 50 operationally compliant. society. society. The SCS is applied equally to domestic companies, leveling the market and foreign playing field. Blacklisting is used sparingly and only in the legal violations where cases of severe system failed. Companies operating in China can use the databases to verify that their public record legally licensed and Chinese partners are moral grandstanding were encouraged. moral grandstanding were The system would discriminate against education individuals based on ethnicity, other scary or wealth, and a hundred possibilities. In the light timeline, the system primarily ramifications up the severe helps shore leads to a major for violating regulations food tainted in fraud, trafficking, reduction scandals, industrial emissions and pollution, and other activities thatto pose a danger Instead of helping companies become become companies of helping Instead willing confident and to take risks, the more misstep would consequences of a excessive cautious. more make companies The list disallowed of would grow behaviors not just encompassing longer and longer, also be used but would to criminal behavior, religious beliefs, political views, to influence and consumer choices. a tattletaleIt would give rise to culture, witch hunts and finger-pointing, where database. officials a powerful weapon that would allow officials them to bring the wrath of the state down on anyone simply by making an entry in a Instead of clamping down on corruption, the SCS would institutionalize it by giving used to browbeat foreign companies in foreign used to browbeat China into unfair legal, ethical or financial positions. there’s a light timeline scenario, and a dark there’s timeline scenario. In the dark timeline, the SCS would be What’s the Chinese government’s end the Chinese government’s What’s is the SCS going? Well, game, and where Where is the SCS going? beings. This is hardly a tamper-proof a tamper-proof beings. This is hardly plenty of places where are setup, and there into the mix. corruption can creep beings. At the city level, data on “good deeds” is collected by human beings. The judges that issue legal penalties that get human files are in social credit recorded The awards that improve credit records are are records credit that improve The awards still beings. Safety meted out by human still carried out by human inspections are … but it still leaves plenty of room for … but it still of room leaves plenty still data is being corruption. Social credit into the system by human beings. entered The system is designed to stamp out is designed to stamp The system (unsanctioned) corruption… records, it will call into question the entire it will call into question the entire records, validity. system’s it is open to abuse, allowing to abuse, it is open fraudulent to come away withcompanies credit good 6.0 - ANALYSIS 6.0 - Special Report: Understanding China’s Social Credit System Reassess your HR and HR and your Reassess processes vetting vendor Look for advantages

by determining your eligibility for awards, by determining your eligibility for awards, and incentive programs. redlists it or not, the SCS is Like coming Whatever your feelings about the SCS, its implementation longer in the is no realm happening, and it’s it’s here, It’s of theory. likely impact on China’s to have a huge Any company whose business environment. operations the extend into China market must invest in understanding the SCS and its potential on their to impact operations, as well with as how to engage it to minimize risk. grading so thatof the ahead you can stay game. 5. of senior records The personal credit can impact your personnel and vendors to take this potential. Prepare growth for key positionsinto account when hiring and and when on China-based projects choosing suppliers. 6. Redlisting may give you a leg up on the competition. Make the SCS work for you Determine which social credit regulations apply to you Keep a close eye on credit a close eye Keep records manage credit data Actively Don’t get hung up on scores hung up on Don’t get 4. Identify which blacklists and grading applicable to your sector. systems are Understand the criteria for compliance and of scores by various credit rating bodies, by various credit of scores all based on are those scores ultimately, on keeping your Focus records. social credit in good shape, and good scores records should follow. 2. notification systems, Because of weak credit a problem you may not not know there’s too late. Companies operating in until it’s to China will need to allocate resources data monitoring. credit 3. Information The National Credit Enterprise Publicity of the System is one few channels which companies can maintain through over their own of control some measure information. Allocate resources credit data is to ensuring self-submitted credit accurate and current. How to prepare for the SCS for the prepare to How 1. willThough companies a series be issued 51

enforcement, but that sword cuts both ways. but that sword enforcement, should create better enforcement In theory, business environment. predictable a more a stricter business But it also creates which not only raises the cost environment, of ensuring compliance, but also raises costs associated with penalties for non- compliance. Better connectivity between various Chinese government databases should hopefully convenient bureaucratic mean more procedures. Stricter enforcement: yay? Businesses operating in China have long consistent regulatory demanded more

What does the SCS mean for companies operating in SCS mean for companies What does the prepare? should you China, and how corporates Takeaways for for Takeaways SECTION 6.2 SECTION for administration have not been involved in fraudulent activity. have not been involved in fraudulent activity. It also has some potential upsides foreign corporations will be able to verify foreign that suppliers, contractors and potential licensed and appropriately JV partners are Through the National Enterprise Credit the National Enterprise Credit Through Information Publicity System (NECIPS), read on how this on how will play out. read of potential has a lot The system upsides for due-diligence echo . The fact is, this danger is still largely echo . The fact is, this danger is still largely As of September 2019, there theoretical. enough case studies to give us a real aren’t The biggest potential problem with the SCS The biggest potential problem is the potential for a minor violation in one a cascade of penalties to trigger that area Biggest concern: the snowball effect Biggest concern: the snowball The good, the bad, the ugly 6.0 - ANALYSIS 6.0 - Special Report: Understanding China’s Social Credit System formatted for reading on mobile on mobile formatted for reading devices, on the latest developments to your in the SCS space relevant sector. updates Policy policy developments The latest social credit on both the national and local levels, and scoring including new blacklists, redlists systems in your operational localities. Case studies real- Exploring examples of social credit’s on both Chinese and foreign world effects companies as they arise. SCS news Chinese media coverage of the SCS, regulatory statements, including official meetings, and debates. Custom policy monitoring Custom policy specially A monthly report, Partner credit profiles of up profiles the public credit review We’ll to 10 potential vendors and JV partners, suppliers. top of your credit data moving forward. data moving forward. top of your credit Credit rectification cheat sheet is repaired, Understand how social credit and what to do if something goes wrong. Corporate credit data management Corporate credit data management and monitoring plan data cheat sheet for credit A tailor-made management, withbrief on how to stay on a 52 how much data is already out there on your out there how much data is already subsidiaries apply to your sector at the municipal, and national level, and what those provincial policies compliant. say about staying advantages Potential competitive system See how to make the social credit work for you by identifying which incentive apply to your operations at the programs and national level, how municipal, provincial to take advantage of them. public credit profile Your stands and Find out how your social credit Social Credit Readiness Plan Readiness Social Credit with a tailored-made you’ve got all your bases covered Make sure strategy. preparedness Risk identification and compliance An outline of which blacklists, grading policies systems, and other credit social

market environment market background trying to solve Credit data management Implications for corporates Blacklists and redlists Penalties and incentives How Beijing envisions the future How What problems the government is What problems the government Basic social credit theory and • • • • • • • Get your team up to speed on corporate social credit: what it is, how it works, and and it works, it is, how social credit: what up to speed on corporate team Get your to get prepared. how the social credit system system credit the social Trivium helps companies prepare for prepare for companies helps Trivium SHAMELESS PLUG SHAMELESS We’ll cover: We’ll social credit via in-person or phone social credit briefing. Trivium researchers walk your team researchers Trivium the basics of corporate through Briefings & Workshops Briefings & Workshops SOCIAL CREDIT SERVICES CREDIT SOCIAL Special Report: Understanding China’s Social Credit System Wu Weihai is an Weihai Wu Shazeda Ahmed’s piece, Shazeda Ahmed’s : ), explores the social ), explores 吴维海 大国信用 Policy Institute, “Social Credit: Technology- Policy Institute, Credit: “Social with Global Enhanced Authoritarian Control Consequences“. Shazeda Ahmed: Data Security Cached Cashless Society, Considerations for a Chinese Social Credit SCS Sesame System, examines private to the national its relationship and Credit SCS. Weihai Wu academic and member of NDRC-affiliated of a Great think “Credit tank. His book, Nation” ( the eyes of Chinese system through credit the SCS as a and presents regulators, individuals, at holistic mechanism directed companies, and the itself. government 53 Marianne Von Marianne Von Dr. Hoffman is a Hoffman Dr. University of Leiden Mirjam Meissner is a She has written extensively on social credit, She has written extensively on social credit, including a piece for the Australian Strategic Implementation. Creemers: Rogier work, “China’s scholar Rogier Creemers’ System: An Evolving Practice of Social Credit is an excellent overview of the SCS Control“, as a whole. Samantha Hoffman: consultant at the International research Institute Studies for Strategic specializing Space and Future in the fields of “Cyber, Conflict and Defense, and Military Analysis”. and China’s Rule of Law“, is a deep dive Rule into and China’s to the Chinese legal relationship the SCS’s system. Mirjam Meissner: senior analyst at Sinolytics, and has been instrumental in exploring the ramifications system in the enterprise of the social credit work for Merics context. Her related System: Social Credit included “China’s to market A big-data enabled approach implications for doing with broad regulation System business in China”, and Social Credit SCS mechanism. The SCS as it exists today SCS mechanism. The theone Lin and his collegues mirrors largely almost 20 years ago. proposed Blomberg: Marianne Von System Social Credit piece, “The Blomberg’s 国家 (社会信用体系原 : Hailed as “the father Jeremy Daum is a fellow Daum at Jeremy : Genia Kostka is a 林钧跃 ). His subsequent work, “Social In their January 2019 work, “The , released in 2003, further cemented the , released 理) National Credit Management System” ( National Credit 信用管理体系 System Theory” Credit of social credit theory”, sociologist Lin of social credit of a social Junyue first outlined the structure system in his seminal 1999 work, “The credit system in any real depth. system in any real Lin Junyue the brains behind China Law Translate. Mr. Mr. the Law Translate. brains behind China Daum is a leading on the voice social credit Western scholar to system, and was the first dig into the policies behind the blacklisting Jeremy Daum: Jeremy China Center and Tsai Paul Law School’s Yale includes detailed results of on-the-ground of on-the-ground includes detailed results public conducted on over opinion surveys 2,000 SCS participants. and Public Explaining High Levels Opinion: is a fascinating exploration of of Approval“, to the SCS, and reaction the Chinese public’s Genia Kostka of Berlin. University at the Free researcher Systems Social Credit Her piece, “China’s European University Institute Department of European systems social credit Law juxtapose China’s outside of China. against similar systems Siems: system: A model for Chinese social credit the from other countries?” these researchers Daithi Mac Sithigh and Mathias Daithi Mac Sithigh This report was heavily informed by the work of western researchers and Chinese social credit theorists. Below, Below, theorists. social credit and Chinese researchers of western work the informed by heavily was This report piece. underpin this that and sources experts the key and link to list we Key sources & experts sources Key APPENDIX II APPENDIX Special Report: Understanding China’s Social Credit System Trey McArver, Partner, Politics Partner, McArver, Trey Econ Polk, Partner, Andrew Andy Chen, Analyst Frida Haapaniemi, Analyst Analyst Joe Mazur, Intern Pearson Goodman, Janz Chiang, Intern Charlotte Ewert, Intern Cory Fitz, Intern Research team Research 54 consultancy. Ether has advised multinational companies governmental organizations and foreign investing and operating in China in a diverse range of sectors. Ether Yin Head of Policy Research [email protected] with BowerGroupAsia, Ether was previously and public policy a US government affairs consulting firm. Prior to that, he was a senior consultant at North Head, a Beijing-based and government relations public affairs Chinese interface design and usability. digital projects for both private investors, digital projects SMEs and multinationals. Her clients have included Google, Envato, and the Eezy network. She specializes in social credit, scene since 2004. She has designed and consulted on over 150 Kendra began designing websites in the mid-1990s, when Geocities was still a thing, tech China’s and has been skulking around Head of Digital Research [email protected] Kendra Schaefer Kendra Project Leads Project Credits APPENDIX II APPENDIX Special Report: Understanding China’s Social Credit System 55 壹茗信风 : 西楚分是什么？信用在日常生活场景中有哪些运用？ https://baijiahao.baidu.com/s?id=1606308961938844929 壹茗信风 : 西楚分是什么？信用在日常生活场景中有哪些运用？ https://www.rccredit.gov.cn/searching/personal_xyjf_page.html Points Rongcheng page: Official 通知 http://credit.jxfz.gov.cn/xydt/xydt_display.jsp?type=3&id=2006 http://credit.wuhu.gov.cn/news/1542281118624.html 山东威海个人信用“海贝分”开始试行 关于《抚州市个人“玉茗分”信用管理办法（征求意见稿）》向社会公开征求意见的 http://credit.wuhu.gov.cn/whweb/points Points Lehui Wuhu page: Official 杭州推出城市个人信用分 http://hznews.hangzhou.com.cn/chengshi/content/2018-11/17/content_7099833.htm 快查查你的“钱江分”有多少？ 关于在一定期限内适当限制特定严重失信人乘坐民用航空器 推动社会信用体系建设的意见 http://www.chinatax.gov.cn/n810341/n810755/c3359637/content.html 关于在一定期限内适当限制特定严重失信人乘坐民用航空器 互联网信息服务严重失信主体信用信息管理办法（征求意见稿）http://www.cac.gov.cn/2019-07/22/c_1124782573.htm http://www.ndrc.gov.cn/zcfb/zcfbtz/201909/t20190916_1164805.html 国家发展改革委办公厅关于推送并应用市场主体公共信用综合评价结果的通知 http://www.gov.cn/zhengce/content/2015-08/05/content_10051.htm 国务院办公厅关于推广随机抽查规范事中事后监管的通知 构建以信用为基础的新型监管机制的指导意见 http://www.gov.cn/zhengce/content/2019-07/16/content_5410120.htm 国务院办公厅关于加快推进社会信用体系建设 http://js.ifeng.com/a/20180808/6789261_0.shtml Jiangsu: 苏州人都有个信用指标“桂花分” IFeng 关于加强和规范守信联合激励和失信联合惩戒对象名单管理工作的指导意见 http://www.ndrc.gov.cn/zcfb/gfxwj/201711/t20171103_866289.html 关于加强和规范守信联合激励和失信联合惩戒对象名单管理工作的指导意见 https://www.creditchina.gov.cn/xyxf/lczy/ procedures: rectification Social credit Lives https://www.vice.com/en_asia/article/gy7kpb/chinas-citizen-tracking-system-can-wreck-peoples-lives People’s Can Wreck System Tracking Citizen https://www.marketplace.org/2018/02/13/social-credit-score-china-blacklisted/ citizens which blacklists system, News: China’s Vice credit” “social Inside China’s Marketplace: http://xycd.changde.gov.cn/514.news.detail.dhtml?news_id=3663 关于对海关失信企业实施联合惩戒的合作备忘录 https://www.creditchina.gov.cn/home/xinyongdongtaituijian/201907/t20190717_162298.html 江苏对环保严重失信企业用电每千瓦时加0.10元 自然资源部建三调黑名单制 严禁人为干预数据真实性 https://www.creditchina.gov.cn/xinyongdongtai/buwei/201907/t20190708_161178.html https://www.creditchina.gov.cn/xinyongdongtai/difangxinyongdongtai/201907/t20190710_161535.html 自然资源部建三调黑名单制 海南海口：被解约拒不退出的物业企业或将列入信用“黑名单” https://www.creditchina.gov.cn/lianhejiangcheng/lianhejiangchenganliguiji/lianhejiangchengbuwei/201907/t20190710_161510.html 国家邮政局：建立实施快递行业失信主体黑名单制度 https://www.creditchina.gov.cn/home/lianhejiangchegn/201907/P020190711584348913355.pdf [PDF] 潍坊市消防信用”红黑名单”管理制度 https://www.creditchina.gov.cn/home/lianhejiangchegn/201907/t20190711_161657.html 广西南宁青秀区教育局发布校外培训机构第一批黑白名单 互联网信息服务严重失信主体信用信息管理办法（征求意见稿）http://www.cac.gov.cn/2019-07/22/c_1124782573.htm https://www.creditchina.gov.cn/home/zhngcefagui/201907/t20190703_160681.html 江西省人民政府办公厅关于改革完善医疗卫生行业综合监管制度的实施意见 [PDF] 关于印发《民航行业信用管理办法（试行） 》的通知 http://www.caac.gov.cn/ZTZL/RDZT/XYMH/ZCWJ/201808/P020180806570926081325.pdf 》的通知 [PDF] 关于印发《民航行业信用管理办法（试行） http://www.hbcredit.gov.cn/gywm/xyml/201909/P020190903352933734904.pdf 年版） （2019 用信息归集目录 [PDF] 全国信用信息共享平台信 http://www.ndrc.gov.cn/zcfb/gfxwj/201711/t20171103_866289.html 人民银行关于加强和规范守信联合激励和失信联合惩戒对象名单管理工作的指导意见 https://www.creditchina.gov.cn/home/xinyongdongtaituijian/201907/t20190715_161935.html 浙江省全面启动高速公路“违法失信清单”管理 https://www.creditchina.gov.cn/home/xinyongdongtaituijian/201907/t20190715_161937.html 福建开展打击骗取社会保险金行为专项行动 http://www.ndrc.gov.cn/zcfb/gfxwj/201711/t20171103_866289.html 人民银行关于加强和规范守信联合激励和失信联合惩戒对象名单管理工作的指导意见 Wu Weihai, 2017,《大国信用》 https://www.creditchina.gov.cn/xinyongkanwu/xinyongtushu/201803/t20180321_111269.html 2017,《大国信用》 Wu Weihai, http://services.ndrc.gov.cn:8080/ecdomain/portal/portlets/bjweb/newpage/difanggaigewei/xypt.jsp Platform Sharing Credit Information National the describing site Official NDRC http://www.hbcredit.gov.cn/xyjs/tzgg/201608/P020160812332922961444.pdf http://www.ndrc.gov.cn/zcfb/gfxwj/201711/t20171103_866289.html 人民银行关于加强和规范守信联合激励和失信联合惩戒对象名单管理工作的指导意见: 2016 年版）》的通知 http://www.hbcredit.gov.cn/gywm/xyml/201802/t20180206_27776.shtml [PDF] 国家发展改革委办公厅关于印发《全国信用信息共享平台信用信息目录（部际联席会议成员单位 湖北省公共信用信息目录（2017版）（行业篇） http://www.zfxxgk.suzhou.gov.cn/sjjg/szsjjhxxhwyh/201812/P020181220539942371335.doc [DOC] 苏州市公共信用信息目录（2018年版） https://www.merics.org/sites/default/files/2017-09/China%20Monitor_39_SOCS_EN.pdf System Social Credit [PDF] Merics, 2017: China’s 社会信用体系建设规划纲要（2014—2020) http://www.gov.cn/zhengce/content/2014-06/27/content_8913.htm 社会信用体系建设规划纲要（2014—2020) 39. 36. 37. 38. 33. 34. 35. 30. 31. 32. 26. 27. 28. 29. 23. 24. 25. 20. 21. 22. 17. 18. 19. 13. 14. 15. 16. 10. 11. 12. 7. 8. 9. 4. 5. 6. 1. 2. 3. Sources APPENDIX I APPENDIX Special Report: Understanding China’s Social Credit System 56 The Guardian: Xi Jinping vows to fight ‘tigers’ and ‘flies’ in anti-corruption drive https://www.theguardian.com/world/2013/jan/22/xi-jinping-tigers-flies-corruption drive in anti-corruption ‘flies’ and ‘tigers’ fight Xi Jinping vows to The Guardian: China: 诚信建设第三方评估严查政务失信https://www.creditchina.gov.cn/xinyongfuwu/shixinheimingdan/heimingdanyanxi/201905/t20190523_156506.html Credit 国务院关于加强政务诚信建设的指导意见http://www.gov.cn/zhengce/content/2016-12/30/content_5154820.htm http://sxdofcom.shaanxi.gov.cn/newstyle/pub_newsshow.asp?id=29037811&chid=100233 陕西省商务厅：发布政务诚信承诺书 http://www.gov.cn/zhengce/content/2014-06/27/content_8913.htm 社会信用体系建设规划纲要（2014—2020) [PDF] 2018上海市公共信用信息服务平台 http://www.creditshanghai.org.cn/resource/upload/cxw/201905/23103028syuo.pdf CBDIO: 国家信息中心与京东金融在京签署《关于加强信用信息共享的合作备忘录》http://www.cbdio.com/BigData/2017-11/13/content_5633262.htm Xinhua: 新版个人征信报告三大焦点解析 http://www.xinhuanet.com/fortune/2019-04/19/c_1210112943.htm http://www.gov.cn/zhengce/content/2019-08/12/content_5420694.htm 国务院办公厅关于印发全国深化“放管服”改革优化营商环境电视电话会议重点任务分工方案的通知 http://www.iberchina.org/files/2018/social_credit_china.pdf of Control Practice An Evolving System: Social Credit China’s Creemers, [PDF] 2018, Rogier https://baijiahao.baidu.com/s?id=1631065708638451623 同花顺财经: 百行征信已与700余家机构合作 计划近期启动个人征信报告产品查询服务试点 http://www.sohu.com/a/324254065_99917536 消费金融风控联盟 : 全国企业征信机构备案数量130家名单 Foreign Policy: Life Inside China’s Social Credit Laboratory https://foreignpolicy.com/2018/04/03/life-inside-chinas-social-credit-laboratory/ Laboratory Social Credit China’s Inside Life Policy: Foreign Xinhua: 新版个人征信报告三大焦点解析 http://www.xinhuanet.com/fortune/2019-04/19/c_1210112943.htm https://files.consumerfinance.gov/f/201505_cfpb_data-point-credit-invisibles.pdf Invisibles Credit Bureau, [PDF] 2015, Consumer Financial Protection http://nb8185.cnnb.com.cn/html/292/1537/1538/1545/2016/0518/773397.html CNNB: 国家发改委与中国工商银行签署备忘录 Qichacha News: https://news.qichacha.com/postnews_75156e77ce5684c5b9df302abf2d2f0a.html 国家信息中心与中国建设银行签署信用信息共享合作备忘录 http://www.11315.com/infnews/show-83504 11315: 发改委与国家开发银行签署信用信息共享合作备忘录推动联合奖惩措施 Bendibao: 厦门白鹭分作用是什么？http://xm.bendibao.com/news/20181113/56242.shtm Bendibao: https://www.businessinsider.com/chinas-tax-blacklist-shames-debtors-2017-12 Shames Debtors Blacklist Tax Business insider: China’s Shamed https://www.scmp.com/news/china/society/article/2144690/chinese-debtors-shamed-broadcast-names-and-faces-giant-screens SCMP: Chinese Debtors Scheme Involves Cajolery Social Credit https://www.economist.com/china/2019/03/28/chinas-social-credit-scheme-involves-cajolery-and-sanctions Sanctions and China’s The Economist: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3215138 of Approval High Levels Opinion: Explaining and Public Systems Social Credit China’s 2018, Genia Kostka: Rule of Law https://mappingchina.org/wp-content/uploads/2019/01/MCJ-No-2-2018-Blomberg.pdf and China’s Social Credit Blomberg, [PDF] 2018, Marianne Von https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3215138 of Approval High Levels Opinion: Explaining and Public Systems Social Credit China’s 2018, Genia Kostka: Sixth Tone: China’s Tax Blacklist Shames Debtors https://www.businessinsider.com/chinas-tax-blacklist-shames-debtors-2017-12 Debtors Shames Blacklist Tax China’s Tone: Sixth 抚州市个人“玉茗分”信用管理办法（试行）http://credit.jxfz.gov.cn/xydt/xydt_display.jsp?type=3&id=2006 https://www.channelnewsasia.com/news/commentary/china-social-credit-system-public-deficit-trust-rating- deficit? trust fix its system social credit Channel News China’s Asia: – can citizens Rating http://baijiahao.baidu.com/s?id=1596169264137845412 中国江苏网: 宿迁正式发布个人信用积分——西楚分 http://news.wh.xafc.com/show-449-834272-1.html 芜湖市全力打造的居民信用积分——乐惠分 XAFC: 抚州市个人‘玉茗分’信用管理办法（征求意见） http://credit.jxfz.gov.cn/xydt/xydt_display.jsp?type=3&id=2006 抚州市个人‘玉茗分’信用管理办法（征求意见） Lives https://www.vice.com/en_asia/article/gy7kpb/chinas-citizen-tracking-system-can-wreck-peoples-lives People’s Wreck can System Tracking Citizen News: China’s Vice JF Daily:上海启动生活垃圾分类大整治，居民垃圾不分类会被处罚吗？https://www.jfdaily.com/news/detail?id=135716 them in check https://www.businessinsider.com/china-dog-owners-social-credit-score-2018-10 keep to Business Insider: score social credit being assigned a are Chinese dog owners http://m.sohu.com/a/208720284_669483 安庆人注意了，实名曝光+人脸识别+信用挂钩，闯红灯的代价是越来越大了··· http://www.hbcredit.gov.cn/gywm/xyml/201909/P020190903352933734904.pdf 年版） （2019 用信息归集目录 [PDF] 全国信用信息共享平台信 [PDF] 关于对模范践行诚实守信个人实施联合激励加快推进个人诚信体系建设的指导意见（征求意见稿）http://www.gov.cn/hudong/2019-06/03/5397131/files/e3dc39de555f4fbaa18e6fc3716550c3.pdf Wenming.cn: 厦门市民个人信用“白鹭分”发布 积分越高生活越便利 http://www.wenming.cn/dfcz/fj/201807/t20180706_4747830.shtml 厦门市民个人信用“白鹭分”发布 Wenming.cn: 77. 74. 75. 76. 71. 72. 73. 68. 69. 70. 64. 65. 66. 67. 61. 62. 63. 58. 59. 60. 55. 56. 57. 51. 52. 53. 54. 49. 50. citizens-10925002 46. 47. 48. 43. 44. 45. 40. 41. 42. Sources APPENDIX I APPENDIX Special Report: Understanding China’s Social Credit System 57 China.cn: 国家发改委就宏观经济运行情况举行新闻发布会 http://www.china.com.cn/zhibo/content_75103275.htm 国家发改委就宏观经济运行情况举行新闻发布会 China.cn: Association:Shijiazhuang Credit http://www.sjzxyxh.org.cn/yanjiu/377.html 不能滥用黑名单制度 国家发展改革委 人民银行关于加强和规范守信联合激励和失信联合惩戒对象名单管理工作的指导意见 http://www.ndrc.gov.cn/zcfb/gfxwj/201711/t20171103_866289.html 国家发展改革委 人民银行关于加强和规范守信联合激励和失信联合惩戒对象名单管理工作的指导意见 2016 年版）http://www.hbcredit.gov.cn/xyjs/tzgg/201608/P020160812332922961444.pdf [PDF] 全国信用信息共享平台信用信息目录（部际联席会议成员单位 https://cj.sina.com.cn/article/detail/6286306759/522264 http://www.gov.cn/zhengce/content/2015-07/01/content_9994.htm 国务院办公厅关于运用大数据加强对市场主体服务和监管的若干意见 : 央行征信中心：”社会信用体系建设”十年利弊分析 https://www.secrss.com/articles/11267 Fintech前线 北大教授：社会信用体系建设目标不是建立“完人”社会 http://dy.163.com/v2/article/detail/EC94JP7I05496II9.html Anquan Neican: 爆笑基地: 专家建议频繁跳槽纳入征信黑名单，网友：怒了！ 国家信息中心与微众银行签署备忘录 开展信用信息共享 http://www.sohu.com/a/134543122_116897 国家信息中心与微众银行签署备忘录 https://www.creditchina.gov.cn/home/xinyongdongtaituijian/201709/t20170930_57873.html 国家信息中心与10家共享单车企业签署信用信息共享协议 Caller ID https://www.sixthtone.com/news/1000762/chinese-app-gives-blacklisted-people-dishonest-caller-id ‘Dishonest’ People Blacklisted Chinese App Gives Tone: Sixth now has over 1 billion users worldwide https://technode.com/2019/01/10/alipay-1-billion-users/ Alipay Briefing: Technode: 最高法院联手芝麻信用 逼迫5300名老赖还钱 https://www.wdzj.com/news/zhengxin/25328.html WDZJ: http://news.hexun.com/2016-08-03/185315281.html 发改委与蚂蚁金融服务集团签署联合奖惩备忘录 Hexun: The Paper: 县政府被纳入失信“黑名单”，对当地带来哪些影响？ https://www.thepaper.cn/newsDetail_forward_1653625 http://www.sixthtone.com/news/2131/county-government-on-legal-naughty-list-for-unpaid-debts Debts Unpaid for Naughty List County Government on Legal Tone: Sixth 县政府被纳入失信“黑名单”，对当地带来哪些影响？ The Paper: 逼迫5300名老赖还钱 https://www.wdzj.com/news/zhengxin/25328.html 最高法院联手芝麻信用 WDZJ: http://xh.xhby.net/mp3/pc/c/201707/31/c357351.html 国家发改委联手苏宁共建社会信用体系 XHBY: http://www.cbdio.com/BigData/2017-11/13/content_5633262.htm CBDIO: 国家信息中心与京东金融在京签署《关于加强信用信息共享的合作备忘录》 http://www.techweb.com.cn/news/2017-06-09/2533307.shtml 360公司与国家发改委签署信用信息共享合作备忘录 重磅发布：中国县级政府政务诚信（2018）百强出炉 https://www.creditchina.gov.cn/xinyongfuwu/shouxinhongmingdan/zhongdianguanzhuhongmingdan/201906/t20190613_158527.html http://www.dlxyxh.org/Product/Content.aspx?ProductId=2027 提升政府公信力 加强政务诚信建设 重磅发布：中国县级政府政务诚信（2018）百强出炉 https://www.creditchina.gov.cn/xinyongfuwu/shouxinhongmingdan/zhongdianguanzhuhongmingdan/201906/t20190613_158527.html http://www.gov.cn/zhengce/content/2016-12/30/content_5154820.htm 国务院关于加强政务诚信建设的指导意见 重磅发布：中国县级政府政务诚信（2018）百强出炉 https://www.qichacha.com/firm_5d25fde0ccda5257ac6adeb33335b22c.html Qichacha: 中鼎资信评级服务有限公司 https://www.creditchina.gov.cn/xinxigongshi/xinxishuanggongshi/xinyongdongtai/201905/t20190530_157154.html 国家发改委对潍坊市“双公示”工作开展第三方评估 http://www.sohu.com/a/165954675_728291 Wu Weihai speech: 设WCO，构建信用全球 天津市人民政府关于印发天津市加强政务诚信建设实施方案的通知 http://www-main.tjftz.gov.cn/bsq3/system/2017/09/08/010080489.shtml 天津市人民政府关于印发天津市加强政务诚信建设实施方案的通知 “信用中国”网站与携程网签署信用承诺合作备忘录 https://www.zhonghongwang.com/show-97-37344-1.html “信用中国”网站与携程网签署信用承诺合作备忘录 103. 104. 105. 106. 100. 101. 102. 97. 98. 99. 94. 96. 90. 91. 92. 93. 87. 88. 89. 84. 85. 86. 81. 82. 83. 78. 79. 80. Sources APPENDIX I APPENDIX 95. Special Report: Understanding China’s Social Credit System 58 socialcredit.triviumchina.com Need anything? [email protected] Hey. Thanks for reading. Thanks for reading. Hey.