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Social credit news: Tianjin just passed their local #socialcredit regulations. My comments on this in the thread below. 1/12http://app.myzaker.com/news/article.php?pk=5fc607d08e9f0960b129247c&f=huangli …
Quick recap on social credit data: There are 2 types of data that can impact a person or company's social credit standing: 1) Public Credit Info (PCI), generated when you interact with the government. 2) Market Credit Info (MCI), generated during market interactions. 2/12
PCI includes government records like tax and social security payment records, operational licenses. etc. Basically, when you interact with government body or court, records are generated, and some of those records go in your social credit file. 3/12
There has been less available information in terms of what "MCI" is and how it will be regulated. We have a vague understanding based on definitions like the one provided in this regulation: 4/12
“MCI refers to the info generated and obtained by credit service agencies, industry assocs, chambers of commerce, and other enterprises, institutions and information providers during production, operation, provision of services, or industry self-regulatory activities.” 5/12
In other words, PCI is supposed to determine if a company is operating in compliance with the law. MCI is supposed to supplement PCI to determine whether or not a business or professional is operating soundly, and offering high-quality products and services. 6/12
In short: Under China's social credit system, the government collects PCI. Non-government bodies collect MCI and may provide that to the government. So, the Tianjin regulations layer in a few restrictions on how MCI can be collected. 7/12
"Where a market credit information provider collects natural person information, it shall obtain the consent of the individual and agree on the purpose, unless otherwise provided by laws and administrative regulations." 8/12
"Market credit information providers shall not collect natural persons’ religious beliefs, blood types, disease and medical history, biometric information, and other personal information that is prohibited by laws and administrative regulations." 9/12
"MCI providers shall not collect information on persons’ income, deposits, securities, commercial insurance, real estate, tax payments, etc, unless they are clearly informed of the possible adverse consequences of providing such info and obtain their written consent." 10/12
This underscores a point I make often: It's not that Chinese regulators don't care to protect the data of citizens. Rather, the differences lay in who the data is being protected from. 11/12
But more specifically in terms of social credit: PCI is very well defined, and the government knows what to do with it. MCI is not - and I think we will see China's approach to MCI collection mature rapidly in the next 5 years as they hammer this out. 12/12
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