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Elena Larin and Vladimir ovchinsky: Chinese social credit system: tradition and technology
Material posted: Publication date: 08-09-2019
Defenders of all countries and peoples in recent years are very concerned about the unfolding China's Social Credit (the confidence) - SCS. Analysis think tanks ChinaFile (Hong Kong, China – 2019) showed that the vast majority of not only media publications and research reports regarding SCS do not understand the essence of this system, substitute the study of the historical content of the traditions of Chinese civilization as the mental basis of the SCS is limited to references to "Big Brother" of Orwell D., "PANOPTICON" of Jeremy Bentham and I. "Number system in a Single State" by E. Zamyatin.

In this regard, before proceeding to the description of SCS, its functionality, structure and deployment, ChinaFile offers to stay on the mental and managerial basis of China that gave rise to SCS.

For the first time the need to deploy SCS was formulated in 2007 by the former President of China Hu Jintao. On his initiative, was developed by the first technical system deployment plan, and in the same 2007 was published "Some observations of the office of the state Council of China on the establishment of the system of social credit."

After the coming to power of XI Jinping, China's state Council in 2014, issued a new document – "the Program of creation of a system of social credit (2014-2020)".

The basic principles of the SCS deep-rooted in Chinese mentality and traditions of public administration. Around 400 BC, the great Chinese reformer Shang Yang ordered people to gather in groups of 5-10 families. They had to monitor one another and to bear collective responsibility for crimes. According to the law on the doors of the houses were hung signs with a per capita inventory families. About departure and arrival of each person regularly reported to his superiors Sotsky warden. This system was called "Bozza".

Reaching more than two thousand years the dispute between the followers of Shang Yang, legists, who advocated the control of society through strict system of rewards and punishments, and Confucians, advocated the education of the people of ethical standards through education and personal example of the powers that be, became one of the main incentives for the development of management thought in China.

It is noteworthy that the recent XI Jinping said that the strong centralized leadership of the party helped to usher in a new era of reform and opening up, start a new path to the great revival of the Chinese nation. In this way the leadership of the party and the state is based on the millennial tradition of Chinese management thought and takes all of the best, reliable and proven from the provisions of Confucianism, legalism and Taoism.

The current President of China XI Jinping in 2013 proposed the concept of "Chinese dream", which meant the dream of creating a prosperous and powerful state, the dream of carrying the national revival and the achievement of national prosperity. In their speeches, XI Jinping said that to achieve the "Chinese dream" requires three basic conditions:

"1.Have to go the Chinese way, that is the path of socialism with Chinese characteristics. The Chinese nation is a nation of extraordinary creativity. Once we have managed to create the great Chinese civilization, then, will be able to continue and expand the development path suitable to the Chinese reality.

2. It is necessary to elevate the unity of the Chinese people, based on trust, the Chinese spirit, the core of which is patriotism and the spirit of the era, the core of which is the reform and innovation.

3. It is necessary to combine the strength of a nation, born of the great unity 56 nationalities and 1.3 billion people. The Chinese dream is the dream of the whole nation and the dream of every Chinese separately".

Under Chinese tradition, trust is synonymous with harmony between man, community and government. The harmony is the same – it is the Supreme duty, the purpose and need of the Chinese. Harmony is achieved by self-improvement, observance of the decencies and norms of the society and execution of rituals, involving adherence to tradition. As for self-improvement, the key to its meaning in Confucianism is "the overcoming of itself as a separate cut off from family, community and the people of the individual's public duties, striving for the Chinese dream".

The main objective function formulated by SCS in December 2016, XI Jinping at the meeting of the political Bureau of the CPC Central Committee. He said: "To deal with the acute problem of lack of confidence to take firm hold over the establishment of a system reliability evaluation, covering all of society. We need to improve as mechanisms to promote law-abiding and conscientious citizens, and mechanisms to punish those who violate the law and have lost trust that the person just didn't dare, just couldn't lose the trust."

In the course of meetings on the development of SCS, Chinese leaders have repeatedly expressed that this system allows to realize in practice the principle of the Golden mean or middle way, which is expressed as:

- proper moderation and the rejection of the two extremes – excess and deficiency;

- the condemnation of all extremes and the desire for a full, open, having the dark secrets of life from others;

- strengthening of justice, when not officials or neighbours, and the artificial intelligence evaluates misconduct and shall render judgment free from bias and one-sidedness;

- development of average norms and values that are acceptable to wide segments of the population;

- the rejection of excessive and fruitless regulation of all aspects of Chinese life, administration, and based on the lives of ordinary people from possible arbitrariness of officials, not follow party instructions and not following the course of the Chinese dream.

Because SCS is a major circuit party and state management, hardware and software solutions in this system should be fully consistent with the ideology of Chinese management at the present historical stage. SCS needs within the framework of party policy and ideology of management to ensure:

- implementation of the underlying mentality of the Chinese principle of "Great Limit", involving the interpenetration and withdrawal of opposites;

- the decision of all questions "according to circumstances" - according to the specific situation on the basis of unified system for all assessments;

- accounting, assuming that in the visible the hidden order of disorder, but in seeming disorder, by contrast, hid unbreakable order;

- strengthening of the basis for the behavior of any Chinese interdependence in the relationship between people with each other, with the community, with the party and the state.

SCS should contribute to the specific modern conditions the most important principle of "following the circumstances of the time." He suggests that:

- every practice is improving itself (this is true for individuals, for organizations, and most SCS);

- the use of SCS will contribute to shaping the behavior of citizens based on openness and adherence to the rituals and the desire for peace of mind;

- according to the formation of the people habits to live in conditions of SCS, this will increase the sincerity of life, and will allow people to at least partly anticipate the course of events and direction of his own life.

The vast majority of publications SCS reduces to the evaluation of the behavior of ordinary Chinese. However, it is not. In speeches XI Jinping and in the regulatory documents it is noted that the generated current system of individual rating is not more than a first step.

In the short term to reytingovaniya will not only the Chinese people as individuals, but also the company as a legal entity, and then various kinds of non-profit and managerial structure of an organization and their leadership.

The main principles of SCS

Speaking at the start of 2019 at the meeting with heads of multinational Internet companies responsible for Informatization, Deputy Chairman of the Central Committee of CPC for administrative reform, Chairman of the Central Committee of CPC's leadership in the field of spiritual culture, Politburo member Liu Yunshan said: "Social Trust is based on Chinese traditions, big data, and artificial intelligence, the system of formation of harmony, sincerity and confidence, as well as education and development. SCS is a tool of implementation Chinese dream in the conditions of Informatization and technological development of China."

Summarizing the normative documents and the speeches of the leaders of the party and government of China on issues of SCS and taking into account the assessments of foreign researchers, there are several basic principles of creation and functioning of SCS.

First, centralism. In accordance with the Chinese traditions of hierarchical and procedural control, having behind at least 2,500 years of continuous use, SCS has developed and will operate according to the principle: from the top down - the subordination and bottom-up data. Centrally by the development of the system architecture. Also in a top-down analysis will be obtained data and making key decisions.

Second, modularity. SCS is the largest and most complex in the world system of monitoring and impact on behaviour. Accordingly, the developers and future system operators decided not to try to create the whole system at once, but to construct it in a modular fashion. This principle involves a rather high autonomy of individual units of the system and the possibility of introducing them into operation gradually, and in the event of possible problems –implementation of modifications of certain blocks of the system. With the modular approach, each element of a large system represents a complete whole, able to perform certain useful functions alone.

Thirdly, competition. With all the centralization, the Chinese tradition has always valued diversity. Historically such a huge country as China, consists of different regions and provinces with different levels of development, mentality and information technology maturity, etc. Historically, China's highest governing bodies are aiming, but not strictly reglementiert the ways of its implementation. Always given the opportunity to take the initiative. However, in all cases, it is not an initiative of goal setting and initiative way to solve the problem. Then, the center of studying of the solution and, as a rule, chooses one, basic. Then this basic solution is adjusted but not radically changed in relation to the specific circumstances of individual regions and provinces. The principle of competition not only allows the most economical and efficient to achieve the goals, but also ensures the involvement of the creative potential of the lower levels in solving problems higher.

Fourth, common platform. When modularity and relative independence of units and components of the system they were originally based on a single platform. This is manifested in the unity of organizational procedures, one for the whole system, the programming language mandated for all developers and operators of the protocols of communication and interaction, etc Platform as a hardware / software base of the system implies the possibility of gradual connecting different modules. Moreover, it is open. In other words, the power and platform complement the modules, which was not originally envisaged in the architecture of the platform. And, on the contrary, without prejudice to the operation, to exclude at any stage of the life of the system previously functioning modules.

Fifth, hybrid intelligence. Because of the difficulties set before SCS tasks that will be implemented in a dynamic and uncertain environment, provided that the essential functions will be artificial, and hybrid intelligence, ie not automatic and man-machine systems. Primarily, this will relate to the analysis of complex trends and in making forecasts based on the predictive information. The hybrid nature of the system is expected to implement not only highest, but all the way down to regional or urban levels. At the same time, in relation to the routine work, the vast majority (up to 90-95% of situations) is to put it AI.

Sixthly, soft ratings. The core of the SCS are social ratings. The social rating is a kind of integral evaluation of human behavior according to the criteria of benevolence and openness towards the society, following the national traditions and commitment to the implementation of the "Chinese dream" of building socialism with Chinese characteristics. Despite the importance of quantitative evaluations, the developers of the system, at least at this stage suggest that integrated assessment of the citizen consists of the numeric and non-numeric assessments will be carried out in the framework of interval estimation scale (very bad, bad, satisfactory, good, excellent).

Seventh, the ability to replicate the system. Seeking to create a world of social prosperity and success in providing the combination of close cooperation that respects the sovereignty of other States, China's leadership believes that after the work of SCS in its individual modules, as well as simplified versions of the system can be sold or donated to donated to third countries to ensure their national development. First and foremost, is meant to provide assistance in ensuring the internal harmony of the countries included in the program of "One belt and one road", as well as the friends of China in Africa and Latin America.

SCS aims to implement a three-pronged task:

- to strengthen confidence, increase transparency and to harmonize the relationship of Chinese citizens to each other, to the administrative bodies and enterprises to the party and state leadership. Historically, as evidenced by numerous studies and surveys of public opinion, Chinese society for centuries was open and transparent. These openness and transparency are not so much imposed from above, how much was realized at the level of neighborhood communities and urban neighborhoods, where everyone knew everyone and lived quite separately from other parts of the city, adjusted for city neighborhood.

Everyday everyday the transparency was common to all predominantly agricultural societies in Europe America and even in Africa. Scrapping of transparency occurred originally in the 40-50 - early 60-ies, during the rapid urbanization of China, and then enshrined in the 60-70s because of socio-political turmoil, which contributed to an abrupt increase of the mobility of the population due to various troubles. As a result, in the 80 zero years under the impact of massive industrialization and the introduction of advanced technologies in China, a neighbor and transparency, interpersonal trust has been largely lost. The norm, especially in large cities began closedness, autonomy and independence from each other. It undermines the Chinese tradition, the national mentality and the grassroots basis, everyday and public safety. This is evidenced not only statistics but also the results of sociological surveys conducted in various cities of the country by decision of the leadership of the Communist party.

Accordingly, there is a task to use the achievements of modern technology to return to the age-old Chinese traditions and restore the harmonious life of citizens in harmony with oneself, neighbors and society as a whole on the basis of trust, transparency and virtues. This task is designed to solve SCS. Specifically we are talking about below:

- to increase the efficiency of educational work among the population and especially persons who have allowed deviations from norms and traditions, and especially citizens, in conflict with them. Such a complex and diverse society like China, has a certain, typically in the range of 3-5%, the proportion of people inclined to deviant on the verge or outside the written and unwritten rules of behavior. Deviant is not necessarily criminal. Most are people who, because of certain circumstances, that is, are on the boundary of the law and their behavior violate not only legal, but also ethical norms.

Along with the social deviant behavior and criminal activity, there is another type of individuals with a behavior that monitors the system. We are talking primarily about the followers of the extremist cults such as the Falun Gong, a radical Salafi Islam, certain interpretations of the Bon religion, DeveloperConnection, etc.

Currently, the education and, when necessary, re adherents of extremist religious cults is very effective, but quite tough methods, including limitations in behavior, detention, etc. At the same time, according to Chinese analysts, the introduction of SCS allows:

- to move from predominantly punitive methods to education, and in some cases re-education of the socially and politically dangerous, prone to deviant behavior of citizens. SCS involves not tightening, and the humanization of governance practices in those regions where religious fanaticism poses a potential risk of causing crime, incitement to ethnic hatred, threats to the movement of the country to "the Chinese dream";

- to establish a comprehensive system of rewarding the worthy, their development and improvement. Decade of life of the socialist people's China is a time of releasing the creative potential of the people, disclosure before dozing abilities and inclinations of millions of Chinese. At the same time, the rapid economic development in recent decades has increased inequality within Chinese society has created problems for social stability and harmonious vision of the future.

In this regard, the third most important task of SCS is to promote, develop capabilities and launch social mobility for better citizens for those not only young people, but also people of middle and even older who are already living by the principles of trust, transparency and harmony.

SCS as a platform includes three major circuit:

- the contour of collecting the heterogeneous data that characterize the first stage of the physical, and the second – a legal entity – the resident of China;

the outline of the storage and structuring of a variety of data characterizing the state and behavior of the physical and then legal entities;

the outline of software and hardware that allows on the basis of AI treatment, the analysis of big personal data, and establishing on this basis the current and the probable virtue of citizens, and in the subsequent legal persons using scales, as well as the implementation on this basis of predictive calculations.

SCS origins are in the distant past of China. In Ancient China recognized the necessity of creating a method of rating and ranking people, first and foremost, officials and military personnel at various levels for the welfare of China. The first written work on this account is considered a treatise Liu Shao "the Doctrine of human abilities", created by about 240 BC This book was written by a great statesman and administrator in the era of the decline of the Han dynasty. Development, and most importantly, the application of the created methodology for the evaluation of Liu Shao was hoping to get rid of negligent officials, incompetent generals and replace them with talented, conscientious and loyal people.

After the reign of the Empire of Jin for evaluating officials ' performance and selecting their positions talented citizens, used the so-called table of the "heavenly mandate". To populate tables with all applicants at the officials took the exams, and exam results increased the rating of the impression produced by experienced administrators, talked with the candidates.

Thus, China in the early first Millennium became the first and only until XX century country in the world, where it was used the technique of ranging estimates is quite large, measured in thousands, the number of people.

In the first 30 years of Communist China's economic turmoil, political upheavals and international conflicts led to the complete oblivion of the leadership tradition of evaluation and scaling. First remember it in the early 90-ies of the last century in the context of market-oriented economic reforms of Deng Xiaoping.

He, under the influence of their European advisors, considered a very positive experience of the capitalist economies and the presence of the credit rating Bureau.

In 2004, on behalf of the leadership of the Communist party, the development team headed by an outstanding scientist, a key figure in the creation of Intercontinental ballistic missiles, a member of the space program, the United States and founder of the space program of China San Suasana and President of the Academy of engineering Sciences of China sun Jiang began developing software and hardware to assess the reliability and effectiveness of civil servants ' performance and credit rating system for emerging national public credit system.

Their achievements were used to create a unique, little known abroad, tracking of staff the state apparatus with the elements of a cybernetic feedback and self-correction. Their work became the basis of improving the capacity and efficiency of the project "Golden shield", known in the world as the "Great Chinese firewall".

In 2002 at the 16th Congress of the CPC, the outgoing General Secretary Jiang Zemin set the task of developing and running within three to five years obschekitayskom system of social credit. So for the first time received the right to Chinese citizenship is the abbreviation SCS. However, at that time it was not about the establishment of a comprehensive system to assess the behavior of Chinese citizens, and bringing to practice the most important element of a modern developed banking system – a continuous rating of borrowers – physical and legal entities – on the subject of the loan.

To implement this solution proved to be more difficult than expected. In 2006, the people's Bank of China managed to create a national Bureau of the credit rating businesses and individuals. By 2012, the center had a file on 280 million citizens and nearly 1.5 million legal entities. it would Seem that the program failed. However, it is not quite so. The fact is that before the ten years of the Bank accounts in China were only slightly more than 300 million people and about 3 million enterprises, of which at least a third were sleeping. This means that the tasks set at the party Congress, were performed and the vast majority of individuals and legal entities actually involved in the loan relations, was covered.

The successful creation of a national system of credit rating, undoubtedly, has pushed policy makers and managers to the idea to use the method of rating on the basis of the indicators used in the banking sector to resolve historic for China, the problem of social rankings of citizens in the framework of strengthening the "mandate of Heaven".

In 2013, believed to be the most knowledgeable foreign correspondents in China, on the initiative of leaders of party organizations in Shanghai, Guangzhou, Kunitsyn and Jecsan took the initiative of holding in the provinces of experiments on testing of the system the comprehensive ranking citizens. For example, in Shanghai it was proposed to develop for each resident a card with sincerity, and to consider its performance not only in the provision of social benefits, but also in determining public and professional perspectives of the citizen.

All these initiatives were in 2013 discussed at inter-Ministerial and inter-provincial joint conference, where the theme was supported. The development of the SCS at the conference were supported and received the mandate of the regional party-state and popular support, the project was launched as the party-state decision in the spring of 2014

Indicators SCS

Officially confirmed list of indicators used in SCS, at the beginning of 2019 does not exist. However, a careful analysis of official Chinese publications, descriptions in the media of experience with SCS in 30 pilot cities as well as information extraction from scientific publications of Chinese and foreign experts on the system lead to the following conclusion.

The basis of the system is the presence of every Chinese life unique electronic identifier. Currently, these identifiers are provided by the law ID, 2003., there are about 90% of the urban population and 50% rural. There is reason to believe that by 2025 the entire population of China will be covered by the lifelong electronic IDs.

The ID is a 18 digit code, in which the name, surname, date of birth and some other information about the person. A Chinese citizen is not allowed to change the data ID. It is totally the prerogative of the authorities.

The key to create and deploy SCS has the total use of personal electronic identifier. In China people cannot access the Internet, buy a device, machine, to rent or obtain an apartment, to carry out any action associated with acquiring the ownership of, receipt or change of job, etc., anonymously, and in cities – paper-based, making it possible the fake documents. Any economic, social, and even domestic actions in China not only online but also offline, starting in 2021, can be made only on the basis of the electronic identifier of the individual.

In other words, the development of means of storing, accumulation and processing of information, the Chinese leadership can get online a complete picture of life in China, with details down to the individual. At the same time, it should be borne in mind that such total control over the behavior requires the establishment of data storage and processing at least five to seven times the storage capacity of the world's largest data warehouse storage by the NSA in Utah. In this regard, the above-mentioned principle in the horizon of 10-15 years is not possible to implement. Much more real is the solid, starting from 2021, the introduction of electronic identification for all residents of Chinese cities with a population of over 1 million people.

At the same time, in the interests of national security, counter-intelligence motives, the motives of suppression are not satisfied with the government political activity, the user can fully track the life of individual citizens and their groups.

In the zero years the developers of the electronic identifier of the individual faced with numerous difficulties when using the ID in the real world. In fact, not all of the city, not to mention the countryside, is equipped with special electronic devices that could read the IDs and respectively provide access to the different networks, terminals, etc.

In this regard, since currently in the midst of work on the Supplement or to replace the electronic identifier of the individual module offline biometric identification. According to estimates by 2023-2025 years of widespread biometric identification will make any transaction in Chinese society completely permeable.

On the basis of the electronic identifier of the individual deploying SCS, which provides for five types of assessment indicators of integrity or sincerity of Chinese citizen:

- official figures. Among these indicators include data that is now officially going to the Chinese state ministries and departments, primarily at the Federal level and partly on the ground. The combination of these data slightly differ from the official data characterizing legal and physical persons in the world. It is the data about name, surname, the place and time of birth, place of residence, marital status, presence and size of the property, or lease of real property, data of the judicial authorities, data from police and other law enforcement databases, etc. a Distinctive feature of SCS is that unlike most North American, European, South Asian countries, these various official data are concentrated in one place and are provided free of charge by the state for evaluation;

- control data. The control data are a Chinese innovation. Together they describe how the official data correspond to reality. This compliance is crucially linked to sincerity and the discipline of the natural or legal person. Show the essence of control data a simple example. The official data used for the assessment include, for example, information on the ownership or lease of real estate and, accordingly, the actual location and living conditions. This is the official data. They are in all cases include the address of the property, the square footage, in some cases, the number of residents, etc. However, law enforcement officials in Hong Kong, the EU and America know perfectly well that official information, such as real estate and accommodation often has nothing to do with reality. Accordingly, in the block of indicators provides information clarifying the official data. According to the creators of the system, these data should put the citizens themselves. This demonstrates their sincerity, loyalty and brings additional points. However, the same information for the citizen can pass on to neighbors, relatives, friends. In cases where this information shows the differences from the official, for example, submitted by a citizen, after verification volunteer assistants of law enforcement informants (the informer) get extra points, and evaluate citizen is penalized for removing serious amounts of points. (You can give the following example. Citizen, moved from the place of permanent residence to another city and rented an apartment there. At the same time, he failed to notify the relevant authorities, did not change section of their digital personality for the residence. Such information, however, is a citizen provided his neighbors. The inspection confirmed this information. Accordingly, the neighbors will get a boost to their social rating, and social rating of the citizen will drop sharply down);

- signaling information. To the signal data are data derived SCS as a result of processing and analysis of information from surveillance systems in cities, and in the future – from the Internet of things. If these data indicates violations of the rules of order, of morality and of the citizen respectively, the rating is lowered. But if the camera or the Internet of things records the noble deeds of a person, for example, save a child, help the elderly when crossing the street, the rating goes up;

- departmental and local information. Much of the information about the daily life of citizens is concentrated at present in the databases of companies, enterprises, local authorities. Until SCS implement Federal, departmental and local databases of information about individuals has never been integrated. This first occurs within the SCS.

What type of information is concentrated in the departmental data? Most importantly, they contain their credit file and information about the reliability as creditworthiness or the borrower. In addition, they contain information about compliance with employee labor discipline, the presence/absence of misconduct related to the production process, etc., Respectively, in the databases of the lower level units of the local self-government contains information, how actively people are involved in activities to landscaping, garbage collection, how he cares about the local environment, not does it create problems for the neighbors immodest or rowdy behavior, etc. Anywhere in the world today have no experience of connecting databases at the Federal level with information storage, which characterizes the behavior of a citizen not only in the banking and financial sector, but at work and in their community. In the framework of the SCS is provided. Accordingly, in their daily lives, hidden from the state, but open to colleagues and neighbors, people depending on the behavior can how to gain and lose points.

In the future, provided by the addition of indicators of SCS, the so-called context indicators. We are talking here about. In the first phase, until 2025, SCS is not envisaged to include data related to the health of citizens, their family relationships in terms of respect for marital fidelity, child-rearing and care for the elderly. At the same time in meeting in the State Council of the PRC at the end of 2018, the decision was made on the inclusion of such indicators in the second stage of the deployment of the SCS on the horizon 2023-2027 years there is no clear information how refers to obtain reliable information for forming estimates of the behavior of citizens in relation to their health, relatives, parents, spouses, etc. However, experience shows that in China, the question is rarely ostentatious and do not involve the deployment of a specific work character.

One of the key secrets of the SCS is currently the base algorithmic calculation of the indicators. Today no one knows exactly, how exactly is the social ranking. However, taking into account the decisions of 2018 inter-Ministerial Joint conference on the creation and deployment of SCS that starting in 2021, the indicators of citizens taken into account when calculating the rating, as well as himself and the individual rating will be publicly available, there is reason to believe that in the coming years will determine the specific algorithms of the formation of ratings.

Punishment and promotion

In the normative documents adopted in 2014, there is no mandatory list of indicators determining the final social rating. Enough detail there prescribed methods of forming integrated rating and the factors for its growth or decline. At the beginning of 2019 in China more than 30 cities conducted practical testing of different modules and variants of realization of the SCS. Results of the tests by the end of 2020 is planned to develop a unified system architecture and a set of methodological rules for the formation of performance evaluation, algorithms for the calculation of the integral indicator and recommended a set of punishments and rewards associated with the level and the dynamics of rating.

However, something quite evident today. First of all, in the rating system of rewards and punishments there is some deliberate asymmetry.

At the current stage of development of the system of the "stick" it has a much stronger "stick". This in General corresponds to the Chinese Confucian tradition, providing that the public reasonable, open and harmonious behavior should be the norm for the Chinese, the "harmony with neighbours, damage to the connection between the citizen and the state, the faults and imperfections of man must not only be condemned but also severely punished".

Among foreign analysts and even correspondents of foreign media in China there is a persistent claim that for all categories of Chinese citizens in the framework of the SCS use the same system of performance indicators, incentives for and punishment. But it is not.

At the initiative of XI Jinping, who launched the fight against corruption and abuses by the leaders of the party and state in the centre and on places, in early 2016, the national Commission of development of reform have prepared a special Memorandum on the necessity of using a special system of penalties for executives of the party and state at different levels, as well as managers and business owners as part of your deployment SCS.

Provides that if the leaders of businesses and companies commit serious violations, reflected in the decrease in the level of trust they forfeit the right to establish or own companies in the financial sector, the export-import operations, to issue shares, bonds, to stock options, to participate in tenders at the Federal and local levels, can no longer rely on government subsidies or state support. The heads of such agencies by reducing their rankings as well as the heads of such structures are deprived of the right to move to senior posts in the public service, the Communist party of China and the armed forces.

As for party and state managers, in the case of a downgrade, they lose the right to buy property and land, and their family members, including adult children and divorced spouses, automatically fall into the black list, limiting their ability to buy or legal to take currency abroad, to participate in companies exploiting natural resources, and export-import operations and transactions on the exchange.

Also this kind of guidance workers and members of their families are limited in the prestigious consumption: lose the right to travel first and business class on high speed trains and planes to visit the estimated more than four stars to separate the resorts that are fully they are forbidden to be in any kind of restaurants, night clubs, Golf courses, travel abroad on vacation. For their children close fee-paying schools, etc.

At the end of 2018 Main Department of the Central Committee of the CPC and General office of the State Council of China at the joint meeting endorsed the experience of punishment of executives, depending on the indicators of social ranking, and ordered the developers of the system, as well as provincial authorities to strictly implement this practice in the transition from experimental to large-scale design version of the SCS.

At the same meeting it was decided, starting in 2020, to publish "black lists" of senior government, party officials, top-managers and business owners. In addition, supported the initiative of Shanghai, where a local PBX when establishing a mobile or another phone with the people included in the "black list" before you join includes automated informers who inform the caller that "the person you call is in the "black list" in the system of social credit and does not cause full confidence."

According to a report by the end of 2018 on the implementation of a SCS, the State center of information on social credit in China reports that in 2018, information was collected about 14 million cases of violations relating to Chinese citizens, with the exception of senior government, party officials and also owners and top managers of businesses. The vast majority of these abuses are overdue by credit, advertising, misleading, illegal street trade, the abuse of family members and relatives, a violation of the rules of the community etc. By the beginning of 2019 in "black lists" are made almost 4 million of legal entities (they will be banned from participation in public procurement, auctions for land, work in the stock market, to conduct export-import operations, etc.), 17.5 million people are unable to buy tickets, 5.5 million people - train tickets, 2 million people have limited possibilities of sending children to the best schools, for 0.8 million receipt in higher educational institutions.

To encourage the growth of the indicator of social trust of ordinary Chinese. provided significant benefits to flights and high-speed trains, mainly associated with preferences for the purchase of tickets and substantial discounts – up to 25% off their prices. Another incentive is the provision of opportunities to outstanding citizens use the Internet with maximum speed. At the same time, for violators of the speed of the Internet as a punishment is limited.

Chinese people with a high social rating will benefit from the sending of children to the best schools and in the training of children abroad. Also, these citizens have formalized advantages in competitions for closure of vacancies in better jobs, as well as free training and the inclusion in the program of a personnel reserve. Citizens with high social ranking are able to obtain Bank loans with an interest rate one-third lower than the pump, with compensation from the state, etc.

Senior party and state workers is foreseen to include in the special program of retraining of personnel with further advancement, as well as in the personnel reserve of Federal and local significance. With regard to top rated executives and business owners, they open additional possibilities in preferential loans, preferential treatment in tenders for public procurement, government support in the import and export operations.

AI in the system SCS

Along with the use and expansion of data warehouses in the Federal agencies and major Chinese Internet companies tied to infrastructure for storing data related to the calculations of the confidence ratings, a key role in the successful implementation of the program plays AI. Only AI allows for a high level and quickly calculate on the basis of various indicators of the level and dynamics of social trust for millions upon millions of Chinese businesses.

In addition, only the AI will give you the opportunity to use the unprecedented richness of the changing array of online data for advanced Analytics of social processes, political situations and vulnerable anomalies of the Chinese society, so necessary for control of a huge state in terms of a turbulent world.

Finally, only the AI will allow based on the palette of the rich but diverse information, to calculate the predictions, allowing the Chinese leadership to track trends in the behavior of citizens in a timely manner to recognize the socio-political and cultural-civil danger and crises.

In his presentation at the XIX Congress of the CPC in October 2017, the President XI Jinping articulated his dream of China as "a scientific and technological superpower." According to him, the first comprehensive challenge to solve the Chinese AI will be to ensure the efficiency, analytical and predictive capacity of SCS.

In 2017, the State Council issued "the development Project AI new generation". The Draft expressly States that the new generation of AI must provide computing power, analytical capabilities and predictive of cognitive computing, it is necessary to use the most complex systems, including SCS.

To solve this problem, by 2030 China will spend on the development of AI is at least 150 billion dollars. And another 1.5 trillion. dollars for the computerization of vital government institutions, programs and the transformation of China no later than 2025, the world's first state to comprehensively managed on the basis of big data. The Chinese researchers note that SCS is the unprecedented scale of the system processing massive personal data based on the most sophisticated and effective methods of AI.

The most important component of China's strategy AI is its initial binding to the most urgent projects such as the SCS, the deployment of Internet of everything with the use of 5G communications. China became the first country in the world, provided exclusively for commercial use the frequencies, where the most efficient use of 5G.

AI and 5G network will link together the current separate Chinese Internet with software managed entities and other critical economic, political, social infrastructure, and Internet of everything. This should turn no later than 2030, China in the world's first fully digital state.

Feature of SCS is its autarkical, the weak dependence on global networks and ICT development. SCS is one of the corner connecting blocks of the phenomenon of a closed Chinese Internet with its own search engines, trading platforms, smartphones, etc., unrelated to their Western competitors. The Chinese digital environment will be managed, analyzed and predicted the Chinese AI in the framework of hybrid intelligence. In fact the connection AI, the Internet of everything with SCS will allow the Chinese leadership to become the most powerful intellectual force on the planet. More importantly, it will allow the Chinese government to significantly mitigate risk in the most turbulent period of civilization, which according to all forecasts will be in the 2025-2035 gg.

Network video surveillance in SCS

In 2015, the Ministry of public security launched a project of establishing a global system of videoresponse citizens on the basis of developments LLVision Technology Co. The goal of the project, which must be fully implemented in 2022, is creating a system of recognition that would for three seconds to recognise the man with the accuracy of up to 90% coverage of citizens 1.3 billion people.

The system should be a key component of the three national projects, first, the project of technological assistance to the National police. Second, the draft SCS. Third, the capacity building project of high-tech exports to China. The project is already currently installed and working 176 million cameras. By 2020 the number will increase to 450 million For comparison, in the US currently operate within Federal, state and commercial programs 50 million video cameras external recognition.

In 2018, the decision to join the National police database, the National database of persons of interest to Governments, and a National database of suspected police officers and other law enforcement agencies. All three databases have varying degree of completeness to be connected to the SCS and to commercial online services Chinese Internet giants, like Baudi, WeChat, Alibaba. Thus, the communication will be unilateral in nature. Internet giants will provide no additional legal solutions to online information databases of the state, and not Vice versa as is the case in the United States.

In 2016-2018 as a testing ground system was chosen to be the province of Xinjiang, where there are 10 million Uighurs-Muslims. Strong anti-government sentiment and clandestinely operated an underground group "East Turkestan". In Xinjiang began testing a system that on the basis of surveillance alerts the police, if the locals rejected more than 300 metres from the "safe zones" (these are considered as home, work, routes between them, the market and nearby shops). In these cases, the police have the right to stop a person or to question his family. In addition, to monitor the movements of residents of Xinjiang, they are required to install mandatory GPS on their cars and pass through cameras that are installed between urban areas and railway stations, markets, shopping malls and gas stations.

The underlying dataset of the National system containing video information for each citizen of China will be approximately 13 megabytes of data per person. The size of the full database with detailed personal information and all variables required to calculate the SCS of the ratings will be in 2022, approximately 90 terabytes of information. All it will require data storage volume at minimal level in 5 exabytes, and in full - more than 12 exabytes, which is more than the repository of the NSA in Utah. For this reason, China is currently in the midst of work to create a powerful backend network which will provide the necessary cloud storage for full database access for operation not later than the end of 2022.

Held in 2018 foreign correspondents experiments on recognition rate showed the following results. For those foreign correspondents who over the past years constantly on the territory of the PRC the recognition speed on a busy street on their faces was 34 seconds, and for those who were in the country not more than seven days – 1 minute. In the course of the experiment, the correspondents were not only recognized by police cameras, but are identified by names, names, numbers, foreign passport, country of permanent citizenship and principal place of stay in China. All of this information was obtained by police in an operations center in Shenzhen, Harbin and Shanghai.

The SCS, the main hope for the video network is vested in the household recognition of positive and negative actions, like street fights, petty theft, violation of the rights of street trading, finding on the street and in public places in an alcohol intoxication, etc. According to the ideologists of SCS, these seemingly small everyday violations must be strictly punished to the maximum under the rating.

Urban and financial system of social ranking

The vast majority of foreign correspondents and researchers of the Chinese actually believe that SCS is the only one used in China, the social system of rating or scoring. However, it is not. At the beginning of zero years, a number of cities and financial institutions first began to develop, and early Teens to use social rating and credit scoring.

Administration one of the largest cities – Shanghai in 2015, has launched a social performance rating, called the "honest Shanghai". The system consisted of triple software and hardware design. The first block is covering the entire city's video surveillance system. The second block is one of the most powerful in China, the center AI Shanghai University capable of online, real-time recognition of not only individuals, but situations, assigning them to different classes or types. Finally, the third block is a program implemented as an application for smartphones that captures the video those or other actions of the owner and transfers it to the Central server.

Each Shanghai kid could desire to download the application from the "honest Shanghai" and participate in the scoring program. The administration of Shanghai developed a scale of reward for every virtuous act, including assistance of the police in the apprehension of criminals, assistance to children, the disabled and the elderly to overcome difficulties or undesirable situations, etc., Accordingly, the inhabitants of Shanghai during the month, gaining positive points and at the end received a monthly assessment. Starting from a certain level, the Shanghai administration awarded the city residents discounts on entertainment activities, the opportunity before the official opening of the shopping centres held sales, more likely to provide benefits to utilities, etc.

At the session of the Academy of social Sciences in Shanghai in early 2019, it was suggested that the need to adjust the SCS taking into account the Shanghai experience to promote greater use of positive incentives and rewards, and reduce the asymmetry in favor of the punishment, as stipulated in most experimental variants SCS.

At the same time most of the social scientists expressed the opinion that much greater weight in the system of social rating should have the indicators that one way or another are estimated through the legal and contractual obligations, and is also reflected in official and departmental information. It was proposed to reduce the impact on the overall rating of indicators of moral behavior with evaluation, not a legal one. However, this proposal did not receive recognition in the collection of decisions of the meeting. Accordingly, we can assume that it will be ignored by party bodies.

If obschekitayskom system of social ranking makes its first experimental steps, a single information system obschekitayskom personal financial scoring is already in the stage of full implementation. In 2017 at the initiative of the President XI Jinping to accelerate economic development and bringing greater stability to the financial investment system of the country, it was decided to form based on accumulated positive experience obschekitayskom the unified system of personal economic scoring.

Currently, this system unfolds under the brand Baihang Credit. This system consolidates and combines eight existing commercial scoring systems, some of which were previously available not only for banks, investment companies, business itself, but in priority preference order for the police and other law enforcement agencies and, upon request of the Federal authorities of China. Starting in 2021, Baihang Credit will be available for the Federal government. law enforcement and the judicial system.

The basis Baihang Credit Sesame Credit will be created by a division of Alibaba and Ant Financial. The system is currently using the company's holding of Alibaba, the national police and the Ministry of foreign trade and Customs service. As at the end of 2018 rankings cover nearly 600 million Chinese. Credit Sesame was launched in 2015, It is a combination of the traditional global banking system, the credit rating of the client with the assessment components of loyalty and human behavior. The rating calculates the rating in the interval between 350 and 950 points. For the calculation of the five indicator groups. They include:

- credit history standard for the whole world form;

behavioral trends, calculated on the basis of data on purchases of goods and services on a platform Alibaba or child sites, the ratio between the purchases using non-cash payments of cash, purchases on credit, as well as the structure of prepaid purchases and purchases in fact;

data on stable economic income (wages, income from securities, rental housing, etc.), and evaluation of personal assets;

- personal data in standard time by global banking of the form, including name, surname, place of residence, year of birth, marital status, place of residence and contact details;

- social-behavioral portrait of a man. Is formed according to social networks according to 15 benchmarks.

The proportion of each group indicators, respectively, equal 35%, 25%, 20%, 15% and 5%. Depending on the gained points, the members of the holding company Alibaba make decisions about granting or not granting of loans, conclusion of contracts with suppliers or buyers in the trade part, etc.

System Tencent now owns China's largest Internet service provider, accounting for about 60% of the Chinese market for mobile access. It is the second largest block, accumulated within Baihang Credit. The system began to unfold in January 2018 and is partly copied Sesame Credit, partly tried to assess the client's criterion of solvency and loyalty, i.e. the duration of the subscription to mobile Internet services. To assess customer loyalty system used such indicators as the frequency of Internet usage during the day; share of time spent on the Internet; the relationship between entertainment, information, shopping and other content; the ratio between the time spent on texting, shopping and video sites (according to Chinese psychologists, the ratio between time spent on text and visual sites is one of the best indicators of the level of rationality of decision-making. Visitors videosyou usually much more impulsive, susceptible to manipulation and incapable of long-term planning).

Also Baihang Credit became established in 2015 in Shenzhen Kaola rating company Credit. As of today, this system is served by 150 million people. It is the exclusive partner of the largest payment system of China UnionРay. At the beginning of 2019, the UnionРay 4.8 billion issued cards, operates in 152 countries and last year took first place in the world in volume of transactions among all e-currency companies. The system itself Kaola Credit rating is a carbon copy of Sesame Credit, which she purchased from Alibaba with a truncated unit of behavioral analysis. In the system Kaola Credit information from social networks is analysed exclusively from the perspective of reliability of the borrower without attempting to evaluate his loyalty and other positive traits.

The oldest rating system, included in Baihang Credit is Pengyuan Credit, founded in 2005, the Company uses traditional methods of assessing the reliability of the borrower. The main argument for inclusion in obschekitayskom system were 130 million customers that does not intersect with the aforesaid higher scoring companies.

Also in the national Chinese system included the existing large companies with extensive credit databases, as Sinoway Credit, Credit Qianhai Service, China Chengxin Credit, Intellicredit.

The most noteworthy are China Chengxin Credit and Intellicredit. China Chengxin Credit scoring is a company that not only has its own database of credit ratings connected to Credit Sesame. This company, along with the usual scoring functions, is a kind of two-way gateway between scoring companies and the police, the courts, etc. It base is at the disposal of law enforcement agencies, judicial system, local administrations. It was through her they can see and use, including Sesame Credit base. In turn, in the bases of this company are important to assess the reliability and loyalty of borrowers, official data from police and the courts.

Within Baihang Credit is the China Chengxin Credit modules are used for direct communication and feedback between Baihang Credit and the National police, the judicial system, local administracji.

As for Intellicredit, it is - by far the largest credit scoring company, with data concerning credit history, the reliability and loyalty of the Chinese people who live or work abroad. The company has a large database of dossiers on citizens of China living in the country, but in this capacity, she acts on the orders of the above companies. Therefore, due to his foreign database and debugged the system, its recharge, it was included in Baihang Credit.

Overall, as of the beginning of 2019, Baihang Credit is a much more established, advanced and effective system of assessing creditworthiness, reliability and loyalty of the Chinese in the metropolis and abroad, compared with the emerging SCS. As at the end of 2018 Baihang Credit covers 1.2 billion records and is one of the largest operating systems of personal data in the world.

As for cooperation between SCS and Baihang Credit, in official documents, any information about this missing. However, knowing the pragmatism of the Chinese leadership, there is no doubt that Baihang Credit will be used as prepared, may key module SCS at the stage of its full deployment.

Why China SCS?

At the beginning of 2019 China donated a video surveillance system and some blocks of the SCS for establishing a system of internal security in Nicaragua. Contracts for the creation of adapted to the needs of software and hardware, video and behavioral modules SCS signed with Bolivia, Ecuador, Tanzania, Mozambique and Eritrea. Starting in 2020, in agreement with the leadership of Kazakhstan, Mongolia and Kyrgyzstan, Chinese experts will begin work on the preparation of comprehensive documentation and the feasibility study of systems of social ranking for those countries. In all cases the main costs were borne by China.

Throughout two millennia of Chinese history, you can observe the same process. Powerful unified Empire after 300-400 years of a brilliant existence, invariably plunged into revolts, conflicts, rivalries. They ended with the inevitable collapse of the United States and the chaos in 200-300 years. Then it started again.

A detailed analysis of the Chinese party documents, speeches of XI Jinping, the articles close to the Chinese leadership researchers suggest that in China are seriously concerned about the approach of new time of troubles. This is partly due to the lessons of history. On the one hand, China has very carefully studied the experience of the Soviet Union and would like to avoid its recurrence.

On the other hand, the Chinese leadership is serious about the imposition of China trade and economic war with the United States. Finally, the greatest fear of the Chinese leadership to cause the export nature of the economy, growing differences in the level and pace of development between urban and rural, North and South, between coastal and Central regions of the country.

According to the modeling socio-economic and political dynamics of China, and such work performed at several Chinese universities, at MIT, commissioned by the governments of Australia, the following picture. A combination of unfavorable, largely does not depend on control actions of the Chinese leadership, external and internal factors of destabilization of China will peak around 2023-2037. In this context, the desire of the Chinese leadership in an accelerated mode to deploy the SCS can be interpreted as a hope for the SCS as a system priority the relief of conflicts, contradictions and pockets of discontent in the Chinese society, and under the most stringent scenario of development of events as a tool to suppress dissent, dissatisfaction and protest.


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