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1 results

  • China's Corporate Social Credit System: The Dawn of Surveillance State Capitalism?

  • Lauren Yu-Hsin Lin, Curtis J. Milhaupt
  • Journal:
    The China Quarterly / Volume 256 / December 2023
    Published online by Cambridge University Press:
    21 June 2023, pp. 835-853
    Print publication:
    December 2023
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  • Chinese state capitalism may be transitioning towards a technology-assisted variant that we call “surveillance state capitalism.” The mechanism driving this development is China's corporate social credit system (CSCS) – a data-driven project to evaluate the “trustworthiness” of all business entities in the country. In this paper, we provide the first empirical analysis of CSCS scores in Zhejiang province, as the Zhejiang provincial government is to date the only local government to publish the scores of locally registered firms. We find that while the CSCS is ostensibly a means of measuring legal compliance, politically connected firms receive higher scores. This result is driven by a “social responsibility” category in the scoring system that valorizes awards from the government and contributions to causes sanctioned by the Chinese Communist Party. Our analysis underscores the potential of the CSCS to nudge corporate fealty to party-state policy and provides an early window into the far-reaching potential implications of the CSCS.