China’s Social Credit System: Levels of Approval of Chinese and Dutch Citizens

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Abstract

In 2014 the Chinese government announced implementation of a so-called ‘Social Credit System’ which should solve three existential threats China is facing: 1. instability of the financial credit sector, 2. limitations in financial services, and 3. threats of social instability. By increasing the collection and centralization of (personal) data, which would result in increased control and transparency, the financial sector should be stabilized and penetration of financial services should increase. Additionally, social instability would be addressed by social management, in which good behaviours are rewarded and bad ones are punished, eventually inducing mechanisms of self-regulation. Although the system aims to solve existential issues China struggles with, the system has gotten a lot of criticism mainly coming from non-Chinese sources. Whereas most studies have focused on how the systems works, aim of this thesis has been to provide insight into the opinion and approval of individuals on SCSs. Based on a survey conducted among Chinese and Dutch respondents strong and higher levels of approval were found among Chinese respondents. Mostly, this higher approval among Chinese respondent can be attributed to the almost negligible share of disapproving Chinese respondents. An explanation to the lower share of disapproving Chinese respondents can be found in the explanatory factors that were identified for both samples, which are: 1. perception whether SCSs would increase accountability taken for actions, and 2. perception whether SCSs increase quality-of-life. As both variables were positively correlated with approval, the correlates show Chinese respondents perceive SCSs more as benefit-generating than Dutch respondents. Furthermore, another interesting correlate showing a positive relation which was only found for the Chinese sample, is trust in government with personal data. As Chinese respondents also reported a nationwide SCS should be run by the government, privacy concerns of approving Chinese respondents most likely is low (or even absent) for government-run SCSs.