China introduces 23 new guidelines to strengthen social credit system

China has recently introduced 23 new guidelines to enhance its social credit system, which aims to create a unified national market and ensure fair competition. The system, first established in 2014, is designed to improve societal creditworthiness by implementing a reward and punishment mechanism based on individuals' and businesses' credit records. This initiative includes measures for better credit information sharing and the establishment of a national-level platform that aggregates billions of credit records to support financial institutions in lending to small enterprises. While the system draws some parallels to Western credit scoring, it encompasses a broader range of data, including social and legal infractions. However, challenges such as inconsistent regulations and risks to information security persist, prompting calls for further improvements. The guidelines emphasize the importance of protecting individual rights while fostering a more efficient and transparent credit environment.