Chinese credit system. If you have a high credit score, in South Korea, you benefit from advantages in financial aspects like credit loan interest rates. However, in other aspects, there isn’t much difference. However, in China, they have turned this credit score into a social system that can restrict people from taking flights, trains, reserving hotels, or even entering universities. Let’s explore the shocking details about China.
the Chinese credit system and Regulations
On August 3rd, China announced regulations regarding mobile phone usage by minors and guidelines for constructing a model for underage internet use.
The regulations limit mobile usage for those under 18 years old: under 8 years old – 40 minutes, 8 to 15 years old – 1 hour, 16 to 17 years old – 2 hours.
But how can this be enforced? Isn’t it too invasive?
They can track almost everything – who’s doing what, where. In other words, the government is monitoring every action.
China has become more of a mobile network society than we might think. In a recent YouTube video about life in China, I saw people ordering everything using QR codes through mobile apps, even paying for their meals. The society is astonishingly dependent on mobile phones. There’s even a video showing how street CCTV cameras recognize faces, recording everyone’s movements. The facial recognition capabilities of CCTV have advanced to the point where nearly every aspect of daily life is under central surveillance, including public urination, anti-government protests, political tendencies, jaywalking, late return of shared bicycles, parking violations, and more.
As far back as August 2021, China had regulated online gaming for minors, so these actions aren’t surprising.
Chinese credit system
In 2011, during the 6th Plenary Session of the Communist Party of China, the establishment of a social credit system was decided.
In 2014, detailed construction and operational plans were finalized.
In July 2018, the organization responsible for managing the social credit system was officially announced.
The management organization is divided into four categories: 1. Data Collection 2. Data Sharing 3. Marking and Publicizing 4. Joint Disciplinary Actions.
The data collected encompasses personal information.
Fingerprint information, facial recognition, financial assets, and tax payment information – almost all personal information lacks protection.
Students are graded based on their academic performance, relationships, exam misconduct, plagiarism, and unpaid student loans.
In addition, activities like jaywalking and parking violations are also scored.
Online conversations, posts, and shopping patterns are all collected as data.
Consequences of a Low Credit Score in China
Having a low credit score in China can result in various disadvantages.
According to the National Public Credit Information Center, around 20 million people have been denied flight boarding, and 5.6 million have been denied train travel due to low credit scores. Low scores can severely limit one’s mobility.
Additionally, 13.2 million people on the blacklist face difficulties finding jobs, and their children may face restrictions in education.
Furthermore, a low credit score can lead to the cancellation of a child’s university admission, prevent entry into private schools, and even result in being refused access to high-speed trains.
Even a slightly low credit score can prevent hotel room reservations.
A low credit score can also lead to the inability to reserve high-quality hotels or, in certain cities like Beijing, to make any accommodation reservations at all.
A low credit score can slow down internet speed, limit access to certain websites, and cause delays in card payments.
When making phone calls, a message may indicate that the caller is a fine defaulter.
The aim of China’s social credit system is to allow those with good credit to travel freely while limiting those with poor credit from even taking a step outside.
China’s Attitude Towards Gaming
China, viewing games as a potential disruption to constructing a digital socialist society, has a negative stance towards gaming.
They consider games and fan clubs of celebrities as unnecessary data, and see them as risky elements.
Due to the rapid growth of the gaming and entertainment industries, China perceives connections between individuals as dangerous.
They regulate games, viewing them as mental opioids. They have implemented gaming time limits, aiming to combat digital addiction among minors. Those under 12 are banned from gaming, and those under 18 are allowed only 1 hour of online gaming per day, only on weekends.
In China, even facial recognition verification is required before playing games, adding to the regulation.
China allows police to access personal information stored in mobile apps and photos. They freely track mobile phone locations, and even bathroom tissue can only be obtained using facial recognition CCTV cameras.
Conclusion
Due to proximity and frequent interactions, we tend to overlook China, a socialist country led by the Communist Party, and its forgotten socialist society. Using incredible IT technology, China is monitoring its entire population, much like a movie.
In this tightly controlled society, China’s economy is currently declining. Real estate is in a dire situation, and many factories are gradually relocating to India. Even the production of Apple’s iPhone 15 is expected to take place in India.
While China faces pressure from the United States and is involved in conflicts with neighboring Russia, it’s internally experiencing almost unique deflation. China’s overwhelming growth seems to be coming to an end.
It’s time to reduce dependency on China and welcome the rise of India and Southeast Asia as a new era unfolds.
