China’s Social Credit System

China has a problem: it’s economy grew fast and that led to a trust problem. If someone doesn’t pay back a loan, there’s no real enforcement. But the solution might cause problems of its own.

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Who can you trust? How can you tell whether someone who borrows money from you will pay it back? In the U.S., we have a credit score to help make these calls. But in China, no such system exists.

So the government came up with its own equivalent: it will score peoples’ trustworthiness using not just court and bank records, but also data from the online shopping companies. Today on the Indicator: China’s social credit system and what it might mean for citizens.

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