Citizens will be under a 'Social Credit' rating 中国将实行信用评级制度

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In most countries, the existence of a credit system isn't controversial. Past financial information is used to predict whether individuals will pay their mortgages or credit card bill in the future.

But China is taking the whole concept a few steps further. The Chinese government is building an omnipotent "social credit" system that is meant to rate each citizen's trustworthiness.

By 2020, everyone in China will be enrolled in a vast national database that compiles fiscal and government information, including minor traffic violations, and distils it into a single number ranking each citizen.

That system isn't in place yet. For now, the government is watching how eight Chinese companies issue their own "social credit" scores under state-approved pilot projects.

One of the most high-profile projects is by Sesame Credit, the financial wing of Alibaba. With 400 million users, Alibaba is the world's biggest online shopping platform. It's using its unique database of consumer information to compile individual "social credit" scores.

Users are encouraged to flaunt their good credit scores to friends, and even potential mates. China's biggest matchmaking service, Baihe, has teamed up with Sesame to promote clients with good credit scores, giving them prominent spots on the company's website.

China's biggest matchmaking service, Baihe

"A person's appearance is very important," explains Baihe's vice-president, Zhuan Yirong. "But it's more important to be able make a living. Your partner's fortune guarantees a comfortable life."

More and more of Baihe's 90 million clients are displaying their credit scores in their dating profiles, doing away with the idea that a credit score is a private matter.

However, Sesame Credit will not divulge exactly how it calculates its credit scores, explaining that it is a "complex algorithm".

Sesame Credit tracks "financial and consumption activities of our users, and materials published on social media platforms do not affect our users' personal Sesame Credit score," explained spokeswoman Miranda Shek.

Sesame rates the online financial transactions of those using Alibaba's payment system, in addition to data it obtains from its partners including the taxi service Didi Kuaidi, rating whether users bothered to settle taxi payments.

Controversially, the company does not hide that it judges the types of products shoppers buy online.

"Someone who plays video games for 10 hours a day, for example, would be considered an idle person, and someone who frequently buys diapers would be considered as probably a parent, who on balance is more likely to have a sense of responsibility," said Li Yingyun, Sesame's technology director.

The Chinese authorities are watching the pilot process very carefully. The government system won't be exactly the same as the private systems, but government officials are certainly taking cues from the algorithms developed under the private projects.

A lengthy planning document from China's elite State Council explains that social credit will "forge a public opinion environment that trust-keeping is glorious", warning that the "new system will reward those who report acts of breach of trust".

Details on the inner workings of the system are vague, though it is clear that each citizen and Chinese organisation will be rated. A long list of people in certain professions will face particular scrutiny, including teachers, accountants, journalists and medical doctors. The special list even includes veterinarians and tour guides.

A national database will merge a wide variety of information on every citizen, assessing whether taxes and traffic tickets have been paid, whether academic degrees have been rightly earned and even, it seems, whether females have been instructed to take birth control.

Critics say the social credit system is "nightmarish" and "Orwellian". However, some believe that some kind of credit system is badly needed in China.

"Many people don't own houses, cars or credit cards in China, so that kind of information isn't available to measure," explains Wen Quan, a blogger who writes about technology and finance.

"The central bank has the financial data from 800 million people, but only 320 million have a traditional credit history."

'Very convenient'

Credit systems build trust between all citizens, Wen Quan says.

"Without a system, a conman can commit a crime in one place and then do the same thing again in another place. But a credit system puts people's past history on the record. It'll build a better and fairer society," she promises.

In a trendy neighbourhood in downtown Beijing, many were enthusiastic when asked about their Sesame Credit ratings, proudly displaying them on their mobile phones.

"It is very convenient," one young woman smiled. "We booked a hotel last night using Sesame Credit and we didn't need to leave a cash deposit."

Sesame has promoted the consumer benefits of a good credit score, from a prominent dating profile on the Baihe matchmaking site to VIP reservations with hotels and car rental companies. A mobile phone game designed by Sesame Credit encourages users to guess whether they have higher or lower credit scores than their friends, encouraging everyone to openly share their ratings.

But few people seemed to understand that a bad score could hurt them in the future, preventing them from receiving a bank loan or signing a lease.

And, even more concerning, many didn't know they were being rated by Sesame at all. For now, the pilot credit system is voluntary, though it's difficult to circumvent. Online shopping is a part of life in modern Chinese cities and Alibaba's financial payment service is ubiquitous.

"We repeatedly remind our customers that using Sesame Credit is voluntary," explains the matchmaking site's vice president, Zhuan Yirong.

"But people really care about trust and honesty. Alibaba's data can provide certain kind of proof. It's not 100% accurate, but at least it's one more filter for people to know each other better."

Perhaps it is good for all citizens to learn quickly about the concept of a "social credit" score, while it is still partly voluntary. Within five years, the government's mandatory system will rank everyone within China's borders.

中国将实行信用评级制度：致力于形成诚信氛围

中国政府的计划是，以从全社会收集的信息作为大数据基础，在2020年前建立起社会信用体系。通过该体系，将能判断出全中国10多亿公民中哪些人是不可信之人。

从各种社交媒体上反映的日常生活现象可以看出，人们的行为和活动需要适当的控制。在网上购买的商品、亲友以及是否缴纳税款等信息，都会反映在社交媒体上。有人对个人的行为进行评价，标明哪些是正面行为，哪些是负面行为，并依据政府决定的标准给每个人打出一个分数。中国政府将要做的工作与这种事情差不多。这种机制将为每个公民打分，以便让全社会看看每个人是否诚实可信。这种分数将影响到一个人能否申请银行贷款、能否顺利找到工作、其子女能否进入理想的学校等。

中国政府在介绍社会信用体系建设工作的文件中表示，将努力把诚信建设摆在突出位置，大力推进政务诚信、商务诚信、社会诚信和司法公信建设，建立健全覆盖全社会的征信系统，加大对失信行为惩戒力度，在全社会广泛形成“守信光荣、失信可耻”的氛围。

为了建立社会信用体系，中国政府准备向8家机构颁发个人征信牌照，它们将成为中国首批个人征信试点机构。这8家机构中包括蚂蚁金服旗下的芝麻信用。蚂蚁金服主要为个人消费者和小微企业提供金融服务。芝麻信用是蚂蚁金服开发出的第一个个人征信系统。

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