By 2020, the Chinese social credit score system will be fully operational and have searchable records and a social credit score to rate trustworthiness for each of its 1.4 billion citizens. We review what the Chinese social credit score system is, how it's generated, and the implications.

1. Chinese Social Credit Score
Utopian Big Data Bliss Or
Black Mirror On Steroids?

2. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
Title
Text
IntroductionIntroduction
Most of you will be familiar with a financial credit score that rates your financial
trustworthiness. It's intended to give creditors an indication of risk and how likely
you will repay your loan commitments. With a massive helping hand from high-
tech and big data, China is rolling out a social credit scoring system that rates
your trustworthiness in all things from your finances to if you jaywalk to who you
associate with.
Let’s take a look at the Chinese Social Credit score system.
Chinese Social Credit Score:
Utopian Big Data Bliss Or Black Mirror On Steroids?

3. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
How is the Social Credit Score Determined?
Fuelled by enormous amounts of data that’s collected about an individual’s voting history,
finances, social media accounts, credit history, health records, online purchases, tax payments,
legal matters and people you associate with in addition to images gathered from China’s 200
million surveillance cameras and facial recognition software, a person receives a social credit
score. This number can fluctuate based on actions—going up for good deeds such as
donating to charity and can go down for negative actions such as getting a speeding ticket.
China began to create this system in 2010 as a pilot program but officially began
implementing the construction of a nationwide social credit system in 2014. According to the
government’s document, Planning Outline for the Construction of a Social Credit System
(2014-2020), all of the social credit scores for its 1.4 billion citizens will be publicly available by
2020. At that time, there will be a searchable file of every Chinese citizen that represents all
the data collected from public and private companies to track their social credit.

4. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
How is a Social Credit Score Used?
The Chinese Communist Party intends the social credit score system to “allow the trustworthy
to roam freely under heaven while making it hard for the discredited to take a single step.”
Even though the system is still under development and actually encompasses several private
firms that operate state-approved projects such as Sesame Credit (launched by Ant Financial,
the finance division of Alibaba), it currently plays out in real life in myriad ways for private
citizens, businesses and government officials.
Generally, higher credit scores give people a variety of advantages. Individuals are often given
perks such as discounted energy bills and access or better visibility on dating websites. Often,
those with higher social credit scores are able to forgo deposits on rental properties, bicycles,
and umbrellas. They can even get better travel deals. In addition, Chinese hospitals are
currently experimenting with social credit scores. A social credit score above 650 at one
hospital allows an individual to see a doctor without lining up to pay.

5. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
How is a Social Credit Score Used?
If an individual has a lower social credit score, they might find their ability to purchase what
they want such as high-quality goods or a new home to be restricted. They might also be
prohibited from buying airline and train tickets or renting an apartment. Some people with
low social credit scores can expect to be blocked from dating sites and not be able to enroll
their children in a school of their choice.

6. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
Actions that Adjust Social Scores
Social credit ratings can go up and down based on an individual's actions.
Purchasing diapers for a child might bump your score (the system assumes you're a
responsible caregiver) while it might take a hit when you purchase alcohol.
Are you a gamer?
It's better for your social credit score if you never cheat when playing video games, but if you
play video games more than 10 hours a day, your social credit rating will likely be lower than
the diaper-buying caregiver.
If you are found guilty of disrupting or blocking check-in counters or passageways in an
airport, as obsessed fans did at the Beijing airport as they fought to gain access to their pop
idols, your social credit score can be lowered.

7. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
Reception of the Social Credit System
in China
Currently, most Chinese citizens have a favorable view of the commercial social credit score
systems in place; a survey of Chinese citizens shows 80 percent of respondents either
somewhat or strongly approve of social credit systems. They perceive the changes as a more
effective and efficient way to promote good behavior and protect them from fraud and bad
business.
As you might expect, citizens who benefited positively from higher social scores were more
favorable of the system. It is predicted that for these positive results to continue, citizens will
need to believe that the system is fair and transparent. Chinese citizens have always known
the government knows a lot about them, so digitizing this isn't as jarring as it would be for
Americans and Europeans. For many that live outside of China it feels more like one of the
creepy episodes of the British science fiction TV series Black Mirror.

8. © 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
Influence Beyond China’s Borders
New research looked at the implications of the Chinese social credit system beyond China’s
borders. All companies with a Chinese business license, a requirement for any company
operating in China, were brought into the social credit system at the beginning of 2018. As a
result, U.S./China scholar Samantha Hoffman believes it is already influencing the behavior of
foreign businesses. In one case, Chinese authorities demanded U.S. and Australian airlines to
use Beijing’s preferred terminology to refer to Taiwan and Hong Kong.
While most people in the US and Europe would be completely freaked out by such an
approach, there are others who see it as the utopian use of technology to promote good
citizenship. Where do you stand?

9. © 2017 Bernard Marr , Bernard Marr & Co. All rights reserved
© 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website
© 2017 Bernard Marr , Bernard Marr & Co. All rights reserved
© 2018 Bernard Marr, Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website

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