(by Rhoda Wilson | The Expose) – On November 14, several Chinese government agencies collectively released a draft law on the establishment of the social credit system, the first attempt to systematically codify past experiments on social credit and theoretically guide future implementation.
This law is formulated to improve the social credit system, innovate social governance mechanisms, optimize the business environment, normalize order in the socialist market economy, raise awareness of the whole society about solvency, defend basic socialist values and complete a credit. information system that covers the whole society.
Law of the PRC on the Establishment of the Social Credit System (Draft Released for Public Comment Request), Chinese Law Translation, November 14, 2022
The law largely follows local rules that Chinese cities like Shanghai have issued and enforced in recent years on things like data collection and punishment methods, only giving them a central stamp of approval.
When the Chinese government talks about social credit, the term covers two different things: traditional financial credit and “social credit,” which draws data from a wider variety of sectors. The new bill addresses the two types of solvency with two different sets of rules.
Financial solvency is a familiar concept in the West: it documents the financial history of individuals or companies and predicts their ability to repay future loans. Most Chinese policy documents refer to this type of credit with a specific word: zhengxin, which some scholars have translated as “credit reports.” It is essentially the Chinese equivalent of the Western credit rating agency and is maintained by the country’s central bank. It records the financial history of 1.14 billion Chinese individuals and gives them credit scores, as well as almost 100 million companies, although it does not give them scores.
Social solvency is what raises the most eyebrows.
Initially, in 2014, the plan was to have a national system tracking all “social credit” ready by 2020. It is now almost 2023 and the legal framework for the system has just been published in draft law of November 2022.
Basically, the Chinese government says that there needs to be a higher level of trust in society, and to nurture that trust, the government fights corruption, telecom scams, tax evasion, false advertising, plagiarism academic, product counterfeiting, pollution… almost everything. .
The government seems to believe that all these problems are loosely linked to a lack of trust, and that building trust requires a unique solution. So, just as a financial credit score helps assess a person’s creditworthiness, some form of “social credit” is believed to help people assess the trustworthiness of others in other respects.
Individuals, companies, legal institutions and government agencies will be liable. Read the full article >