Project description
Since 2014, China has been developing a so-called Social Credit System that assesses the creditworthiness of individuals and companies. This system also stores data on individual behavior, and the information is publicly accessible. The model is intended to ensure security in economic relationships in China.
The project examined from an interdisciplinary perspective the data foundation on which the system is built and how it is evolving. It also explored the impact on Germany and global political institutions: Are German companies also being assessed? How does China’s Social Credit System differ from institutions like Schufa? And could the approach be attractive to other emerging countries and spread internationally?
The analysis shows significant differences between Chinese provinces in terms of the structures of the Social Credit System, but overall, the systems are characterized by a lack of transparency. The researchers identified concerns regarding privacy, fairness of assessment, and lack of justification for the criteria. Compared to Chinese companies, German companies are less affected by the negative impacts of the Social Credit System. In China, small and medium-sized enterprises, in particular, feel high compliance pressure. The system also has a self-reinforcing effect there, as it is used to select business partners. The project found no concrete evidence regarding the export of the Social Credit System to other countries. However, there is an academic debate in China suggesting that a stronger unification of the Social Credit System aims to make the system “exportable”.
The project was completed by 30 June, 2023.
Contact
Project team
Prof. Dr. Jens Großklags
Chair of Cyber Trust at the Department of Informatics, Technical University of Munich
Prof. Dr. Doris Fischer
Chair of China Business and Economics, Julius-Maximilians-Universität Würzburg
Prof. Dr. Eugénia da Conceição-Heldt
Chair of European and Global Governance, TUM School of Governance
Lena Wassermann
Research Assistant and Doctoral Candidate, Chair of China Business and Economics | Julius-Maximilians-Universität Würzburg
Prof. Dr. Omar Ramon Serrano Oswald
Professor of Global and Intercultural Management, Institute for Marketing & Global Management | Bern University of Applied Sciences
Severin Engelmann
Research Assistant, Chair of Cyber Trust | Technical University of Munich
Theresa Krause
Doctoral Candidate, Chair of China Business and Economics | Julius-Maximilians-Universität Würzburg
Benjamin Lee Cheng Han
Doctoral Candidate and Research Associate, Chair of European and Global Governance | TUM School of Governance
Carmen Löfflad
Research Assistant and Doctoral Candidate, Chair of Cyber Trust | Technical University of Munich
