A social credit system the need of the hour

The "social credit system" exemplifies China's top-level design approach, which is coordinated by the Central Leading Group for Comprehensively Deepening Reforms. The State Council, China's Cabinet, has issued the "Planning Outline for the Construction of a Social Credit System (2014-20)", which says the social credit system will focus on four areas: honesty in government affairs, commercial integrity, societal integrity and judicial credibility.

Under market economy, businesses acquire the products and services they need through trade, with trust and cooperation among individuals and businesses being the basis of successful trading.

As such, an objective and accurate knowledge of the other party's credit score is necessary in order to reduce risks. And the lack of sufficient trust among market players makes it difficult to strike a business deal.