China’s Social Credit System: A Warning For America?

Patrick Bet-David explains the intricacies of China’s Social Credit System (SCS). This system, which evaluates citizens based on their behavior and activities, assigns scores that can drastically affect their daily lives, from travel restrictions to social interactions. Patrick explores the origins, development, and real-world consequences of the SCS, highlighting individual stories and the broader societal impact. With expert insights and detailed examples, we uncover how this system influences not only individuals but also businesses, dictating their access to financing and market opportunities based on compliance and behavior ratings.

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Patrick Bet-David is the founder and CEO of Valuetainment Media. He is the author of the #1 Wall Street Journal Bestseller “Your Next Five Moves” (Simon & Schuster) and a father of 2 boys and 2 girls. He currently resides in Ft. Lauderdale, Florida.

So imagine living in a country where Different behaviors the way you live to Have a social credit score and if you do Good things you get good scores if you Do bad things you get points taken away From you such as if you have bad driving Or traffic offenses if you watch too Much porn you lose points okay Jaywalking smoking on trains not Cleaning up after your dog you lose Points on your social credit score not Having your dog on a leash you lose Points not paying taxes okay playing too Many video games you lose points making Frivolous purchases consuming too much Alcohol or junk food criticizing the Government you lose a lot of points Criticizing the social credit system Visiting unauthorized websites being Friends with or messaging others with Low scores or Those who commit the above Offenses you lose scores you may say There's no way something like this Exists there's a country out there Called China that is using this system Called the social credit score system That other countries are watching and Saying what a brilliant idea we're going To talk about that today so listen quick Warning by the time you watch this video You may be inspired to want to move to China because it's just such a wonderful Place to live where people can control Your decisions your thoughts you have a

Scoring system so brace for impact the Inspiration is going to go higher the Longer you stick around but if this Thing gives you value make sure you give It a thumbs up and subscrib to the Channel so by 2022 an estimated 80% of Provinces regions and cities had Introduced some version of the system More than 33 million businesses in China Have already been given a score under Some version of the corporate social Credit system and China social credit System rates individuals ready based on The aggregation and Analysis of data and Some trials they have involved a single Numerical score between 1 to a th000 Similar to a FICA score sometimes it's a Through D but it's not like the FICA Score that you're thinking about America So don't be like well what's wrong with That we have that in America I got a 620 Fic score I got an 820 F score very very Different fic score in America your F Score has nothing to do with how much Porn you consume or how much video games You consume Brandon got nervous for a Second because cuz that was the part he Was not happy about however we're going To keep this in and we're going to Continue let me give you the timeline of How they came up with this in 2009 local Governments launched the first round of SCS Pilots SCS the social credit system 2014 June State Council issues a road

Map for building a comprehensive social Credit system for Citizens companies and Organizations by 2020 January 2015 The People's Bank of China select eight Companies to develop pilot consumer Programs for this system April 2016 32 Urban districts are selected for the Pilot system January 2018 12 cities are Selected April 2019 a senior official Warns that companies with low social Credit scores will face disciplinary Measures including restricted financing That's a very big deal if you're not Going to be getting financing June 2019 State Council agrees to speed up the Building of social Credit Systems which Will include a Black List element and in 2020 deadline for implementation so now Let's go through individuals then we'll Look at companies individuals data Collection this is when system Aggregates data on individuals based on Various sources including Financial Records social behavior compliance with Traffic rules legal judgments and even Online behavior number two scoring in Ratings individuals receive scores based On their behavior high scores typically Reflect responsible financial behavior Law-abiding actions and socially Desirable conduct low scores may result From Death criminal Behavior traffic Violations and fraud number three Rewards and Punishment high scores can

Lead to benefits such as lower interest Rates on loans access to high-speed Trains and planes without restrictions And easier access to visas low scores Might result in penalties like Restrictions on travel slower internet Speeds and difficulty obtaining loans or Jobs and and by the way if you're saying What do you mean travel restrictions on Travel what does that mean well very Simple according to the National Public Credit information center Chinese courts Bann people that wanted to travel from Traveling you know how many times from Buying flights you know how many 17 a. 12 million times by the end of 2018 We're not even talking about today You're like trying to book a flight I Want to go to Vegas hey babe it's not Letting us go to Vegas what's going on Here babe the credit card should work no No it's just not even letting me book it Babe put your passport in oh you put the Right number I did we can't go to Vegas Why is that because your social credit Score sucks that's why you can't go to Vegas that's kind of giving you a visual What this means here let me continue so Now for businesses number one compliance And behavior monitary businesses are Monitored for Regulatory Compliance the Fulfillment of contractual obligations And overall corporate Behavior including Environmental practices and product

Quality number two ratings impact a Company's rating can affect its business To financing eligibility for government Contracts and even its ability to Participate in Market in certain markets High ratings may offer advantages like Tax incentives and better loans while Low ratings can lead to increased Inspection sanctions and restricted Opportunities so now you may say Pat Give me a break I mean this this kind of Stuff you read on the internet people Make videos there's no way this is true Business Insider gave a lot of different Testimonies of examples of this happened In China here's a couple stories for you A Chinese University suspended a Student's enrollment because of his Dad's bad had social credit this kid his Student enrollment was suspended because His dad's got a bad score the father C Named Ral had failed to repay $29,000 Loan and was added to debtor's Blacklist That prevented a University from Accepting his son here's another one for You Lee Xin a lawyer who was deemed Untrustworthy after not fulfilling a Court order in 2015 was placed on the List and was unable to purchase plain Tickets home while on a work trip Human Rights Watch reported he also could Didn't apply for credit cards here's Another one for you an unidentified Woman in Beijing told BBC in 2015 that

She was able to book a hotel without Having to pay cash deposit because she Had a very good score can you imagine She just kind of follows everything Conforming to everything you can book Your hotel cuz you got such a fantastic Social credit score a 32-year-old Entrepreneur who only gave his name as Chen told foreign policy in 2018 that I Feel like in the past 6 months people's Behavior has gotten better and better For example when we drive now we always Stop in front of crosswalks if you don't You will lose your points at first we Just worried about losing points but now We got used to it so now you're watching This you may be saying well Pat what's Wrong with that you notice even this This fellow named Chen said that 6 Months later people are getting better Right why shouldn't we support something Like that in America or a different Country well let me give you this Episode from Black Mirror it's called Nose dive in this episode Lacy pound you Know in this episode you get to interact With somebody if you like the way They're taking care of you give them a Score or five star great job hey you Look so great five star hey you give me A nice compl five everybody's kind of Like scoring themselves others based on Interaction they're having and this girl Lacy her score is 4.2 and she's trying

To get this apartment discount at this Luxury apartment community is like oh my God what am I going to do I can't get Into this place she's being invited to This wedding by her friend filled with a Bunch of five stars so she's like dude I Got to go there so I can increase mine From 4.2 to 4.5 so I can go live in this Luxury place anyways on the way there She's starting to have some bad Experiences one of the drivers she goes With has a terrible score she loses a Point off of it then she's getting more And more agitated eventually she makes It to this wedding but when she's at the Wedding she's so angry she's so Furious Her score is dropped to a two and her Friends at the wedding they're like dude You cannot be here cuz you're going to Hurt our score she gets arrested She Goes to Jail when she goes to jail her Score is a zero and at jail when her Score is a zero there's another fellow There who's also got a score of zero you Know what they realize they stuck Cursing each other out with a smile on Their faces and they found out how happy They are to be able to say whatever they Want to say hence freedom of spee hence You ain't got that in China as much as That episode is a fiction trying to kind Of mess with your head type of an Episode China is forcing you to act like You're happy and do all the right things

To control you meanwhile you don't have The freedom to be you and you're losing A part of your ability your identity and By the way aside from the earlier one I Told you the whole 17 and a half times They prevented people from flying Booking flights in 2018 there's a whole Other things they got five and a half Million people that are blacklisted for Social credit offenses prevented from Buying train tickets 5 A2 million times We're talking about so even a report was Released saying that once discredited You're limited everywhere so can you Imagine you're like discredited here Everywhere else you go and you try to Live a normal life you're going to have The same kind of limitations and being Able to have access to things that People will higher Social credit scores Are going to have and by the way if You're watching and saying you could Never live in a country like this this Isn't China thank God it's not in your Country yet or is it because it is kind Of getting some elements of it in Australia Australia has its immigration Policy of good character test for Residency Germany has an element of it India's flirting with this as well but Recently we saw what happened with the Canada truckers anybody who was in Perimeter of protest they locked their Bank accounts and GoFundMe and and this

Even prompted prime minister Justin Trudeau to invoke his country's Emergency act for the first time in Canadian history to call the unrest it Gave the police sweeping new powers to Go after the finances of the protest ERS Later Canadian authorities said that They were lifting freezes on hundreds of Bank accounts associated with protest Organizers and Canadians who had Blockaded Ottawa streets with their Vehicles obviously Justin Trudeau is Inspired by what they're doing in China Maybe he wants to turn Canada into China But we don't know and by the way even in The states feds monitor bank records for Gun and Bible purchases words like Mega And Trump customers were calling for a Boycott of Bank of America after a Report that the bank handed over the Account information of hundreds of Innocent people in connection with the January 6 deadly riots at the capital at The request of the FBI the country's Second largest bank allegedly snooped Through information of anyone making Certain purchases in and around Washington and handed over the Information of 21 people according to Fox News Tucker Carlson at the time look If you're watching this right now let me Paint a picture that maybe it'll make Sense to you you know how as a kid you Know you're going to make mistakes and

You're going to get in trouble I got Four of them they make mistakes all the Time and they're going to get in trouble Remember when you were a kid and we made Mistakes there's different kind of Parents one of the types of parents with A helicopter parents that just like They're hovering over everything you do Right we're watching the movie it one of The boys the mom is like no he's going To get sick no he's going to do this and A kid is always afraid right or watching A movie with Adam Sandler what's the Movie's name water boy right where the Mother's like no my son can't do that You can't date this and she's afraid of Losing the son maybe you love your kid Sure you do but how much you want to Control your kid the kids are going to Make mistakes you made mistakes I made Mistakes they're going to make mistakes Then take that as the government and Treating 42 year olds as if you're 9 Years old what I understand Law and Order I go rob a bank I go to jail you Kill somebody you go to jail different Levels of crime you sell maybe weed You're smoking yourself maybe we we make It legal distribution may be different Cocaine different different levels Totally get it we should have levels for All that stuff but for this to watch Every single thing that you're doing to Control your behavior you know what that

Officially means if a society says yes To it and you conform eventually you're Nothing you're just a robot and and that Government owns you but by the way Longterm this is not sustainable because Anybody that's a creative anybody that's An entrepreneur anybody that you know The new inventions when they go break The rules and create something new That's revolutionary for all of us those Types of people cannot coexist in a Chinese Society because what that Prevents is having to break the rules to Build something new that's Innovative For everybody else but in this kind of An environment the only thing you can do Is steal the ideas from America and just Copy it not create it make sense so this This whole concept of what they're doing There you know for some of you that are Watching it's like I don't have to worry About this that'll never happen in my Country oh really you're one lead away From this happening in your country one Leader away who wants to control Everything that you're doing from this Happening in your country so what's the Solution only the paranoid surviv in the Army they used to say stay alert stay Alive always make sure that you're Keeping your eyes open to see what's Going to be taking place but the people In China are living in this Society Right now and there's a reason why they

Have a negative net migration going on In China if you got value out of this Video give it a thumbs up and subscribe To the channel if you enjoyed the video There's another video to watch we did a Video specifically on cbdc I'm sure You've heard of the concept cbdc but if You don't really know the intricacies of What they're really doing click here to Watch the video take care everybody Bye-bye Bye-bye [Music]

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