Controversy

Is China's social credit system ethical?

MIT Technology Review
WRITTEN BY
03/31/25
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Fact Box

  • The Chinese Communist Party has been the major political party of China since 1949, however the country is considered both socialist and communist because the government still has control over private companies. 
  • China’s social credit system dates back to the early 90s when the People’s Bank of China initiated a financial sharing program. It started as a predominantly economic system until President Jian Zemin added a social credit aspect in 2004. By 2014, the official use of the credit system was established as it is today. 
  • MIT Technology Review asserts that the social credit system does not evaluate the social credit of its citizens contrary to popular belief, but rather, businesses. 
  • In May of 2024, Pew Research revealed that 81% of Americans had an unfavorable view of China with 16% in opposition. Half of respondents critique China’s impact on the US economy, saying its influence is negative.

Mark (Yes)

China’s 'social credit system' (SCS) gives negative marks to those the government perceives as misbehaving—everything from social media usage to how recklessly they drive or act irresponsibly in public. This sort of system is designed to strongly encourage ethical and trustworthy behavior among their citizens and, conversely, discourage unethical and deceptive actions. Not only is this SCS ethical, but it could also ideally make the world a better place.

Even though the SCS is the first policy of its kind to create penalties for societal infractions that often go largely unpunished, it has the interests of its citizens and the betterment of its society at its core. This explains why some studies indicate that most Chinese people favor it. They know this is true and have experienced increased safety because of it. 

China’s SCS ensures that people who are disingenuous and unethical will have their social status denigrated. People who scam other people or take advantage of them may be subject to potential litigation, but that can be a long and uncertain process. It also penalizes those who use social media to spread negativity and misinformation, which studies have shown to be particularly detrimental to mental health. However, the system isn’t merely in place to identify and monitor negative data. It also rewards people for being altruistic and trustworthy, such as awarding citizens travel accommodations and banking privileges. 

The SCS in China is groundbreaking, progressive, and pragmatic. It’s the optimal meeting point of idealism and practicality. If adopted and adapted by other countries, it truly could create a more balanced and harmonious living experience for nations worldwide. 

 

Luke (No)

The immediate concern with the Chinese social credit system (SCS) is the utter lack of transparency as to how the social credit system actually works, making it easy for the Communist Chinese Party (CCP) and government individuals to abuse and selectively enforce. Indeed, part of having a free and functioning society is having a fair legal system free from personal opinions and agendas. 

Beyond this, what is known about the social credit system is rather alarming. While the social credit system has not been officially launched, the various ‘local experiments’ give a glimpse into what the future holds for the Chinese people. It seems that the CCP is willing to limit how people travel, what they can purchase, and what schools they and their children can attend—among many other restrictions—not for breaking any law but for engaging in activity labeled by the CCP as ‘immoral.’ 

Such a system, while it may indeed force the population to act in specific ways, will also place undue stress on the population who now cannot make effective plans, as at any moment they may lose their ability to depend on essential societal functions due to shadowy rules while also constantly having the feeling that every action is being monitored by a government employee from a windowless room in Beijing. 

Finally, the social credit system would essentially freeze Chinese culture, as the punishment for deviations from societal norms would disincentivize people to think outside the box or try new experiences. Such a non-transparent system that can wildly alter a person’s life while simultaneously suppressing the culture and educational advancement of its people can, under no circumstances, be considered ethical.

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