The primary mechanism of the Social Credit System are the nationwide blacklists and red lists. Each regulatory agency was asked to come up with a rap sheet of its worst offenders, businesses and individuals who violated preexisting industry regulations. The red lists are the exact opposite—they’re rosters of companies and people that have been particularly compliant. Those archives were then made public on a centralized website, called China Credit, where anyone can search them. Think of the Better Business Bureau, or letter grades given to restaurants.
Many regulatory agencies have signed memorandums of understanding with each other, in which they promise to punish people and businesses on one another’s blacklists. Hypothetically, if this system were in the US, a business might now face additional penalties from the Environmental Protection Agency for breaking a rule at the Food and Drug Administration. There’s no evidence that citizens’ social media or purchasing data is being incorporated, at least not yet. “They’re making it so that these records are communicated to other agencies,” says Daum. “Somehow, that got interpreted as everything you do is being watched all the time in a panopticon, and that I have not seen.”