Category: China

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181: Knowing China Better:  Chinese Social Score System

 

China’s social credit system isn’t a world first but  it is unique.

Pic courtesy:https://www.bertelsmann-stiftung.de/fileadmin/files/aam/Asia-Book_A_03_China_Social_Credit_System.pdf

The Social Credit System is part of Xi Jinping’s vision for data-driven governance. 

 

The goal of the China social credit system is to provide a holistic assessment of an individual or a company’s trustworthiness.

 

The China social credit system, is an extension of existing social rankings and ratings in China which have existed for millennia.

 

The Social Score is a system that collects all kinds of data about citizens and companies, sorts, analyses, evaluates, interprets and implements actions based on it.

 

In concrete terms, this means that if you wait at a red light, you get plus points. If you pay your taxes and bills on time, you get plus points. If you are socially involved and accept the rules, you also get plus points.

 

If you have a good Social Score, you get unsolicited benefits for your social behaviour. These include, for example, faster visa application processing and more freedom to travel. When dating online, algorithms higher prioritize the own profile. Banks offer lower interest rates for company loans or private real estate purchases. People with a high Social Score are promoted faster and get better job offers.

 

However, people who go red, cut off someone while driving, spit on the street or stick their chewing gum under their seat get minus points.

 

Anyone who criticizes the state in social media or pays their bills too late also receives minus points.

 

The consequences of a poor social credit score could be serious. It may affect travel prospects, employment, access to finance, and the ability to enter into contracts. On the other hand, a positive credit score could make a range of business transactions for individuals and corporations much easier.

 

It is essential that any foreign business consolidating or establishing their presence in China seek professional advice for managing a social credit score. This applies both to individual scores, and the corporate social credit score. 

 

Machine (AI) based Implementation

Every country has laws, cultural norms, social morals and social agreements. The police, courts, politicians, administrations, media and citizens are involved in a constant dialogue; it determines what we define as right or wrong.

 

In China, this task has partly been taken over by Artificial Intelligence based machine i.e. controlling and managing the society – with machines instead of people. The machine decides on correct and incorrect behaviour.

 

Inputs are obtained from:

  • Financial Data
  • Digital Data (Internet websites, apps, videos and pictures visited/browsed)
  • Mobile Data (Calls and messages)
  • Health Data

 

The data is used to make individual profiles (Behaviour, movement and content).

 

Based on the profile credit scores are allotted and reviewed.

 

Based on the credit score the privileges are granted or curbed.

 

Ethical Issues

This system raises a lot of ethical questions related to freedom and privacy.

 

  • Who monitors the score, who imports the data and who configures the system?

 

  • How ethical and moral aspects (if any) are integrated?

 

 

  • Who monitors the system to prevent manipulation, and abuse of power?

 

  • What data is collected? Who has access to it?

 

 

  • How is the privacy of citizens and companies ensured?

 

  • Are only Chinese citizens monitored or all people on Chinese territory?

 

 

  • Does the government also collect data on Chinese people abroad?

 

End piece

Collecting data and setting up administrative systems to ensure protection, freedom and security for all concerned is a legitimate tool for states. However, as surveillance increases, privacy must be respected as long as the welfare of society is not affected.

 

Titbits

In China everyone’s movements are monitored continuously. In the AI based monitoring system besides face recognition, even gait recognition has been introduced to make it more fool proof.

 

 

Question

Do you approve of such a system?

 

Suggestions and value additions are most welcome

 

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References

 https://www.wired.co.uk/article/china-social-credit-system-explained

 https://merics.org/en/report/chinas-social-credit-system-2021-fragmentation-towards-integration

 https://nhglobalpartners.com/china-social-credit-system-explained/

 https://www.bertelsmann-stiftung.de/fileadmin/files/aam/Asia-Book_A_03_China_Social_Credit_System.pdf

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179: Knowing China Better: sha zhu bang (Kill Pigs List)

 

People fear fame like pigs fear growing fat.

– Chinese saying

 

Most countries have a list of the wealthiest people and it is considered as an honour to feature on the list.

In China, these lists have a colloquial name: sha zhu bang: “kill pigs list.”

In the last fifteen years, China has produced greater overall wealth than any other country. The number of its billionaires has gone from a mere 15 to around 250 in just six years.

But for a number of these people this elevated status is short-lived. Majority of those on the list end up in the court or the jail. Some even get executed.

 

Regulatory Realignment

Over the last year, China has seen a struggle between state regulators and entrepreneurs as the government tries to bring technology companies increasingly in line with the strategic goals of the Chinese Communist Party.

China’s regulators need to discipline their country’s tech companies goes beyond normal concerns to a broader sense, that the companies’ interests aren’t sufficiently lined up with the Chinese Communist Party’s industrial policy or its goal of achieving technological self-sufficiency.

The campaign has continued apace in 2021 with an intensifying series of antitrust crackdowns and data security probes into the major tech firms (by fining for anti-monopoly violations, penalising for price dumping, and app dumping from app stores etc.)

 

XI’s Directives

  • Xi has made it clear what he expects from tech executives. A 2017 directive called for measures to “strengthen the sense of loyalty” among entrepreneurs and to strengthen the authority of the party leadership over them.
  • In July 2020, Xi told entrepreneurs that they should emulate “patriotic entrepreneurs” from Chinese history.
  • Another set of directives released in September 2020 said that “ideological guidance” should be strengthened to “create a core group of private sector leaders who can be relied upon during critical times.”
  • Most recently, Xi presided over a meeting of the Communist Party’s Central Committee for Financial and Economic Affairs at which officials outlined plans to adjust excessive income and “encourage high-income groups and enterprises to give back to society more.”

 

Voices of dissent

 Alibaba founder Jack Ma gave a speech last October harshly criticizing China’s regulatory system. His speech was like a punch on the face.”

Ma told the assembled members of China’s financial, regulatory, and political establishment that the regulatory system was stifling innovation and needed to be reformed to fuel growth.

 

“Chinese banks, operate with a pawnshop mentality”

“To innovate without risks is to kill innovation,”

“There’s no innovation without risks in the world.”

– Jack Ma

 

In giving the speech, Ma took a big risk for himself. His words were a clear signal to regulators that tech companies would fiercely resist any imposition of red tape on them, no matter how reasonable.

The speech reportedly infuriated the leadership in Beijing and prompted Xi to take drastic actions.

 

Towing the line: Pre-emptive Philanthropy

The tech executives have seen the writing on the wall. Now some of China’s richest entrepreneurs have embraced philanthropy in a bid to stave off unwelcome government attention.

One day after Xi emphasized the virtue of philanthropy, tech conglomerates and China’s rich are pledging billions of yuan towards common prosperity, social, environmental, education and science initiatives.

The sudden outburst of philanthropic activity is part of an effort to court public opinion and polish their reputations before they find themselves in deep trouble.

Some chief executives have even decided to move completely out of the limelight by stepping down from their positions at the top of their companies.

 

Is it Weeding out Corruption?

Arrests and prosecutions like these make one believe that China has begun to take corruption more seriously. However, arbitrary and selective targeting points otherwise.

China’s legal culture thrives on the principle of ‘killing the chicken to scare the monkeys.’ If the Chinese authorities want they can probably find grounds for accusing any one of them for bending or breaking the rules.

 

Is it to Crush the Perceived Potential Competition?

China’s billionaires and tech giants are seen as potential rival centers of power and influence in the country.

The party and the party president feels if not put in place, they can emerge as alternative powers.

Your views and value additions are most welcome

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References

https://www.theatlantic.com/international/archive/2013/01/why-do-chinese-billionaires-keep-ending-up-in-prison/272633/

https://warontherocks.com/2021/08/china-takes-on-its-tech-leaders

 

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175: China’s Active Defence Strategy

 

Genesis. China’s Active defence Strategy appeared first time in  MAO’s writings in the year 1936. However, its meaning has been changing from time to time along with the war fighting philosophy of China.

 

Changes in War Fighting Philosophy. War fighting Philosophy of China has changed with the era of person in power. Over the years the changes are as follows:-

 

  • Mao Zedong – Final War (with reference to world wars)
  • Ding Xiaoping – Local War (Shift from world war to limited wars)
  • Jing Zemin – Local war with Hi Technology.
  • Hu Jintao – Informatised Local War (Network centric war)
  • Xi Jinping – Informatised and intelligentised war (Unrestricted War – including elements of hybrid and unconventional warfare even in the Grey Zone).

 

Initial Connotation. When the idea was conceived initially it meant allowing the enemy to come into own territory, in area of own choice and up to pre decide depth. Allow the enemy’s logistics supply lines get stretched out and dry down and at an opportune moment attack and defeat him. It was sort of offensive defence.

 

Present Framework. China articulates its Active Defence response as:

“China would never invade or expand, at the same time would never permit any piece of Chinese territory to separate from China & PLA will strike after enemy has attacked”.

 

Analysis & Implications

  • There is always a gap between what china preaches and practices. China although states that she will not expand, but is driven by the baser instinct of expansionism, considering herself as an empire state rather than nation state.

 

  • China decides as to what is part of China, by staking claims and producing conveniently select and doctored historical and legal documents.

 

  • China has left definition of enemy attack intentionally vague. It is not limited to military attack by kinetic means. It may include any action by the adversary which is against the interest of China.

 

  • In other words China decides what enemy attack is, and reserves the right to respond in a way it feels is appropriate.

 

  • It means China will always have the initiative and will have the legitimacy (in her opinion) for her actions.

 

  • China justifies her approach to this active defence strategy as strategically defensive but operationally offensive.

 

  • In tune with her war fighting philosophy of unrestricted warfare, the attack on enemy would be any domain (land, air, sea, cyber, space, electronic, information, psychological or even nuclear). It could use everything and anything as a weapon from the instruments of national power (DIME).

 

  • This strategy coupled with China’s practiced strategic approach of “achieving objectives without firing a shot”, would mean that China would continue to perpetuate grey zone warfare (inclusive of hybrid and unconventional warfare).

 

  • China’s formation of Strategic Support Force as a separate service, is in tune with the above mentioned strategy and actions.

 

Bottom Line

 There is an urgent need for reorientation and gearing up (not only by military) to deal with these challenges.

 

Question

Are we doing it?

 

YOUR SUGGESTIONS & VIEWS ARE MOST WELCOME

 

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