Social rating in China

How social rating works in China

The number of violations for which a social rating was lowered to the population in 2018 included false advertising and violation of drug safety rules. 290 thousand cases were recorded when individuals with a low rating were banned from holding senior positions or being legal representatives of the company.

People who refuse to serve in the army are also forbidden to rest in certain places and hotels. At the same time, the state both rewards people and punishes them. People with high social scores will be quicker to get permission to visit places like Europe.

Citizens can also receive discounts on electricity bills, rent things without collateral and receive a reduced interest on a loan from a bank.

By the beginning of March 2019, civil scoring systems are operating in 40 cities of the Celestial Empire - they are being tested in pilot mode. Depending on the region, the conditions for raising and lowering the rating may change.

For example, in the city of Suzhou, every citizen can earn up to 200 points for donating blood and volunteering. The rating depends both on the financial and professional situation and on household factors. For services to the local community, the Chinese allow longer use of public bicycles and take more books from the library. At the same time, a person can be punished for late utility bills or booking a table in a restaurant, which he did not use without notifying the institution.

In one of the cities in Shandong province, each resident receives an initial score of 1000 points. People can earn extra points for government-encouraged behaviour, such as charity, and are fined for not wanting to give up a place transport in a disabled person, pregnant woman or elderly person. A high rating gives advantages when using public services, and low scores negatively affect social benefits.

China's national facial recognition system allows automatic downgrading of violators

One of the lawyers, in a conversation with The Wall Street Journal, said, that one of his clients, co-owner of the travel agency, after disagreements with the landlord, which he rented, lost the lawsuit -  and was forced not only to pay the landlord by court order, but also lost the opportunity to buy plane tickets  and high-speed trains  and can no longer accompany customers, that  is, he was punished twice for   the same thing.

By March 2019 China , the project to create a national database based on continues to be implemented. face recognition For his sake , a network of cameras is being built in the country, video surveillances which the Chinese authorities themselves call the largest in the world: 176 million cameras have already been installed, and about 450 million are planned to be installed by 2020. It is not known how many Chinese cameras are equipped with a facial recognition system, but, according to the idea of ​ ​ the authorities, by 2020 artificial intelligence it will be able to recognize each of the almost 1.4 billion residents of the country in the face in three seconds.

By combining this data with the databases of police, banks and online services, the authorities will be able to identify violations in public places and lower the social rating automatically.

2023: Free food for high-rated citizens

In China, in April 2023, the authorities launched a network of social credit grocery stores. Citizens with a high rating can receive products from the government for free here. Money for this is taken from the taxes of citizens with a low social rating.

2021: China officially legalized the "Social Credit System"

People with a low rating cannot get a normal job, they are not given loans, do not sell transport tickets and may even refuse to rent a bicycle^[1]

Law-abiding, honesty, even consumer behavior - a variety of aspects of a citizen's life are monitored by the Chinese Social Rating System. In China, a new civil code has been adopted since 01.01.2021, officially legalizing the "Social Credit System."

The essence of the idea of ​ ​ Chinese specialists who carefully studied foreign experience in this area was the proposal to endow the inhabitants of the conditional city with N with a certain amount of points. This initial amount, which guaranteed all residents equal starting conditions, could either grow or decrease - depending on what the owner of a kind of "wallet" did useful or harmful. A similar system applies to legal entities - companies are checked for compliance with environmental and legal standards. The conditions and safety of work at enterprises and their financial statements are also assessed.

Now every citizen has a starting rating of 1000 points. A single information center analyzes each of 160 thousand different parameters from 142 institutions. If the rating is more than 1050 points, then you are an exemplary citizen and are marked with the AAA index. From 1000 points you can count on A +, and from 900 - on B. If the rating fell below 849, you are already a suspicious carrier of category C, who can easily be dismissed from state and municipal structures. Those with 599 points and below fall into group D, this is comparable to the 'black mark', since they will not be hired even by a taxi driver.

People with a D rating cannot get a normal job, they are not given loans, do not sell transport tickets and may even refuse to rent a bicycle. For comparison, a person with an A + rating will be given a bike for rent for free and will still be allowed to ride it for half an hour without a single yuan. A person with an average C rating will be given a bicycle only on bail of 200 yuan.

With people from category D, the rest are afraid to even talk, because someone can tell the authorities that you communicated with a person from the "black list" and your rating can be lowered. And also a low rating will lead to public censure and ridicule: the publication of the names of those guilty, up to personal informing of acquaintances, colleagues and relatives.

Under the new code, the Chinese will receive points for:

• participation in charitable activities,
• caring for older family members,
• good relations with neighbors and assistance to the poor,
• donation of donor blood,
• government support on social media,
• having a good financial credit history,
• committing any heroic act.
• etc.

From citizens can deduct points for:

• violation of traffic rules,
• participating in the protest against the authorities and posting anti-government messages on social networks,
• unsatisfactory care for aging parents,
• spreading rumors and fakes on the Internet,
• insincere apologies for the crimes committed,
• participation in the activities of sects and cheating in online games.
• etc.

The issue of introducing a social rating system in Russia is being actively discussed. Through sharing and cround technology, society is moving faster and faster towards the need to create a single digital profile of a person. For example, in September 2020, Sberbank provided its system for assessing citizens when hiring a company. Common stop factors (discriminations) when applying for work can be:

• Credits
• Overdue loans + proceedings on them from bailiffs
• Information on previous court cases (participation in criminal cases and others)
• Criminal records (also extinguished)

Based on the list above, often people face a restriction when applying for a job, which they are refused due to loans of active or overdue payments. At the same time, from the point of view of security personnel who invented these stop factors, clients with similar reasons are not trustworthy and means the scum of society.

2020

The launch of a system that monitors alcohol drunk by citizens and cigarettes smoked

On May 26, 2020, it became known that the administration of the Chinese city of Hangzhou, where the headquarters of Alibaba Group is located, announced the creation of a state-level rating system for assessing the health of citizens.

The administration proposed to borrow the principle of operation of the system from the Alipay Health Code system to track physical contacts with infected with COVID-19, which was launched in China in February 2020 based on the Alipay application developed by the Alibaba subsidiary. After registering with Alipay, users are assigned a color code - green, yellow or red, indicating their COVID status.

In the Chinese city of Hangzhou, a system with QR codes is launched, which monitors alcohol drunk by citizens and cigarettes smoked

In particular, the Hangzhou administration proposed using QR codes to read the rating of a citizen, the owner of a mobile phone - by analogy with QR passes that owners of mobile devices in China present in order to get to certain public places.

Officials have demonstrated examples of rating calculations. So, if a person drinks alcohol or smokes cigarettes, his rating will decrease, and if he goes to a fitness center, he will increase. It is also proposed to use information from a citizen's electronic medical card to calculate the rating.

It is not known, however, how data on bad habits and physical activity will be collected. The city administration did not give an answer to this question, adding that it had not asked anyone to develop such a system and was not going to do so yet.

With the onset of the COVID-19 pandemic, the governments of some countries announced the development of mobile applications that allow you to find out if the user was in contact with people who were infected with coronavirus infection. Human rights activists express concern that after humanity defeats a new attack, the authorities will find a reason to maintain surveillance of citizens using new mobile applications, the principle of operation of which is not always transparent.^[2]

Chinese hiding coronavirus infection began to reduce social rating

In March 2020, it became known that the Chinese convicted of concealing the coronavirus disease are beginning to be fined by lowering the social rating.

According to the news publication Abacus, the Chinese authorities announced that citizens coming to Beijing from abroad should disclose their symptoms or medical history if they have or have a coronavirus.

Chinese caught hiding coronavirus disease begin to be fined by lowering social rating

Otherwise, violators are reduced in rating, which means that they are deprived of some privileges, for example, a reduced credit rate in banks or access to hotels of increased comfort. After several violations, the Chinese are blocked from buying property and even train tickets.

Punishments related to the deterioration of the social rating were introduced after the Chinese woman returned from the United States to Beijing after she developed a fever and cough. She hid her condition from the flight attendants by taking antipyretic pills. Subsequently, she tested positive for coronavirus.

By March 20, 2020, a woman is under investigation and may be accused of violating the law on the prevention and control of infectious diseases.^[3]

Similar penalties were introduced in February 2020 by the Shanghai authorities for everyone who hid the fact of traveling to zones of increased coronavirus activity or contact with a confirmed or potential infected person. The administration of other cities is also going to resort to this decision.

In January 2020, the authorities of the city of Rongcheng called on the public to take an active part in the prevention of epidemics and issued rules for the application of social incentives and punishments during the prevention and fight against the epidemic.

Different regions of the PRC have their own social rating system, but the administration of many of them uses it to fight the coronavirus.

2019

Introduction of a social rating system for companies in China

At the end of September 2019, it became known about the introduction of a social rating system in China for companies, including foreign ones. Business will have to strictly comply with about 300 requirements that relate to tax control, environmental protection, labor safety, product quality, cybersecurity, etc.

Chinese and foreign companies are required to study about 1.5 thousand pages with the provisions that they need to comply with in order to continue business in the PRC. Otherwise, they risk being blacklisted. Tax and hiring provisions are especially important.

It became known about the introduction in China of a social rating system for companies, including foreign

The European Union Chamber of Commerce for Affairs in China has released a comprehensive study on how the deployment of a corporate social credit system in the Middle Kingdom will affect market relations.

Previously, the discussion of the social rating system introduced in China focused on the relationship of the system with individuals, while its destructive impact on business remained almost unnoticed. The corporate system uses modern technologies to monitor, control and manage market participants. It includes a variety of requirements, compliance with which forms the basis for calculating the rating.

The behavior of companies within the system will be constantly monitored, and estimates will be adjusted, and if enterprises are unable to comply with all aspects of the system, they will face various sanctions or even blacklisting.

Most rating requirements relate to strict compliance with market rules. International companies, as a rule, will be well positioned to maximize the results of the rating, but they will face a struggle for additional resources. Selecting the right partners and suppliers and then monitoring them regularly will also become part of doing business, as partner ratings will affect the company's own credit rating. At the same time, the regulatory rating system will require the collection of huge amounts of data, mainly through mandatory reporting to government agencies.

Representatives of the EU Chamber of Commerce in China warn companies that the system will affect all aspects of their existence, and non-compliance with the presented parameters can put an end to any development.^[4]

Often changing jobs Chinese will reduce the rating

In early April 2019, the authorities of Zhejiang Province, located in eastern China, decided to punish citizens who often change jobs by lowering their social rating.

The fact that residents of Zhejiang for the frequent change of employers begin to be fined by lowering the social rating, said the representative of the local administration Ge Pingan.

In Zhejiang province, residents will be punished for the frequent change of work by lowering the social rating

These measures are designed to ensure stable employment of the population, the provincial human resources department and social security officials said. The government report says that it will not be difficult to implement such a plan, since the human resources and social security department already stores information on 10 million residents of the province, obtained through the social insurance system.

The reason for the imposition of sanctions was the complaint of one of the trading companies in the province, which noted a high level of layoffs. The company's management did not like that they were forced to pay employees with whom they wanted to terminate the contract, but did not receive anything in return when the employee decided to leave the workplace. The deputy head of the provincial government replied that he would take measures to solve this problem.

The idea has sparked a fierce backlash from Chinese people wondering if such sanctions would be imposed on firms that force their employees to leave jobs. Many noted that such a move runs counter to China's labor code and encroaches on individual freedom.

Nevertheless, the implementation of this plan is quite real. Many Chinese cities have become test sites for social programs that force companies and individuals to comply with the rules. So, in 2018, more than 3.59 million Chinese organizations were added to the official blacklist, which forbade them to engage in various activities, including bidding on projects, entering securities markets, participating in land auctions and issuing corporate bonds. Approximately 17.46 million "discredited" Chinese have lost the right to buy plane tickets, and another 5.47 million can no longer buy tickets for high-speed trains.^[5]

China launches social rating for young people

At the end of March 2019, the Chinese company CY Credit, in partnership with the Central Committee of the Communist Youth League and the National Commission for Development and Reform, launched a social rating for young people. Read more here.

2018

Low social rating Chinese not sold 23m plane and train tickets

In 2018, the Chinese failed to buy about 23 million plane and train tickets from their low social rating. Such data are provided in the report of the National Public Credit Information Center (NPCIC), published in February 2019.

A total of 17.5 million tickets were not sold to potential Chinese air passengers who did not pay taxes, fines or committed other violations that led to a decrease in social rating. In the case of rail transportation, the volume of refusals to such citizens was measured at 5.5 million. These people have become "discredited" for unspecified behavioural crimes.

Chinese choose travel vouchers at the agency, March 3, 2018.

Due to unpaid taxes, 128 people were unable to leave China in 2018, and 3.59 million unreliable individuals and legal entities were blacklisted by the government. Participants in these lists cannot buy land, issue bonds and even use public transport, Nikkei notes. In addition, companies may lose the right to conclude government contracts, receive loans and import goods.

In 2018, the authorities created 18 more new "blacklists" (their total number reached 51), which, among other things, cover areas such as insurance, accounting, statistics, etc. In 2018, 3.59 million people were added to these lists.

According to the NPCIC, by the end of December 2018, about 3.5 million Chinese citizens "voluntarily fulfilled their duties to the state." 37 people paid a total of 150 million yuan (about $22 million) in overdue fines.^[6]

Academic Roger Creemers, specializing in Chinese law at Leiden University in the Netherlands, called the social credit system in China "perhaps the most striking manifestation of the Chinese government's intention to strengthen legal, regulatory and political processes through the use of information technology." 

In addition to the social rating system, created by order of the Chinese government, the central bank authorized eight commercial companies to create their own solutions that assess the credit rating of citizens. The most popular among them - Sesame Credit - was created by financial technology developer Ant Financial Services Group, which collects data from the Alibaba online ecosystem (by the beginning of 2019 it has more than 700 million users). Although Ant Financial denies any involvement in the creation of a national social rating system, estimates from Sesame Credit take into account many government agencies, including libraries.

Testing of the "social rating" system

According to a report on November 26, 2018, a "social rating" system is being tested in China, which will further tighten control over the population.

With the help of facial recognition system, monitoring of the actions of citizens will be carried out. For each offense, they will be awarded points, and the more of them a person has, the lower his "social rating." The rating will determine the level of access of a citizen to jobs, services, travel and other benefits. In the near future, registration in the system will become mandatory for everyone.

The Municipal Development and Reform Commission Beijing announced that by 2020 it will begin registering all residents of the capital and registered Beijing with companies. At the same time, the government of the Middle Kingdom intends to introduce mandatory registration in the system throughout the country.

The expanded system affects almost all aspects of the social life of citizens, and in particular such an intimate sphere as dating. Thus, citizens with a high rating are given great "visibility" in dating apps. The ranking also affects the ability to take children to private schools and universities, fly planes, ride trains and book rooms in upscale hotels.

According to some reports, users with a low rating specifically slow down the speed of the Internet. In addition, their applications for leadership positions are not accepted for consideration.

The technical side of the system is not disclosed. Nevertheless, it is known that a number of public and private organizations monitor whether citizens pay bills in a timely manner, what they publish on social networks, what they do on the Internet, whether they violate the law and even avoid military service^[7].

Millions of Chinese banned from travel due to low social rating

Several million Chinese citizens were denied the opportunity to travel due to low social ratings. As of April 2018, an insufficient reliability rating caused the cancellation of 4.25 million trips by high-speed trains and 11.14 million flights by plane, the Global Times reported. Millions of^[8].

The electronic social rating system in China began to be tested in 2010, and by 2014 it was introduced en masse. Law-abiding and trustworthy citizens who have high rates in the rating receive a number of privileges, for example, a chance to get a good job, priority in service in state institutions and the opportunity to get a loan. At the same time, violation of traffic rules, criticism of the authorities on social networks and denunciations written by neighbors negatively affect the rating indicators and deprive a citizen of such basic rights as the ability to travel.

"An improved social credit system is needed to drive discredited people to complete bankruptcy [...] The payment for unreliability needs to be increased, otherwise people will continue to behave in the same spirit, "said former member of the State Council of the People's Republic of China Ho Yunchun.

According to the plans of the Chinese government, by 2020, the trustworthiness assessment system should cover 1.4 billion residents of the PRC.

Credit rating in China will determine online purchases and profiles in social networks

In February 2018, it became known that the central bank of China approved the initiative of Tencent and Alibaba Group to create a credit rating system for citizens based on online purchases and profiles on social networks. Read more here.

Criticism of the system

2019: Akimov calls social rating in China a "terrible" experience

Russia is not going to introduce surveillance systems populations like those used in. China This was announced on the air of the radio station " Talking" in Moscow July 2019 by the Deputy Prime Minister. Russia Maxim Akimov

China's experience in creating surveillance systems for citizens will not be used in Russia, said Russian Deputy Prime Minister Maxim Akimov

In his opinion, the Chinese system of social rating of citizens based on their personal data is a terrible experience.

The president set the task of the digital agenda to ensure maximum protection of individual rights, maximum protection of people's rights, "says Maxim Akimov. - The path of social rating is  unacceptable for us, it has much more destructive consequences in terms of social trust.

The Deputy Prime Minister  of the Russian Federation assured that there are no plans in Russia to create a social rating system, although he admitted that such a public discussion is going on by July 2019, and there are people who say that technological development requires putting an end to human rights.

Akimov noted that the human rights situation in Russia is difficult and it is necessary to focus on the fact that a person is the only source of data about himself.

But as for the digital world, basic humanitarian law - that a person is the sole steward of rights, since he is the only source of data about himself - this basic paradigm should be maintained, the Deputy Prime Minister said.

This is not the first time he has spoken out about the systems of assessing citizens and their social rating in China. At the Sberbank Data Science Day conference in November 2018, the Deputy Prime Minister called such technologies "a clear threat," which, in his opinion, Russia manages to avoid thanks to "a society with a classical humanist tradition."

In 2020, the Chinese authorities plan to extend the social rating system to the entire population.^[9]

Censorship (control) on the Internet. China experience

Main article: Censorship (control) on the Internet. China experience

Notes