[vidarh]

You evaluate this as a credit score. It is not. It is a "citizen score", where the Chinese state is in effect levying an extra tax on business in order to finance financial benefits for those it considers well behaved, and where a credit score is just one of the components.

They could have done the same with direct cash transfers, but here they're leveraging the credit system to make it less blatant (you can pretend to yourself the loan you got wasn't because you pushed your neighbour into withdrawing those posts) and seemingly more rewarding (they just need to finance whatever increased bad credit it causes, so the overall amounts will be larger than if they spent the same on direct transfers).

As a credit score, yes, it's clearly flawed. As a means of controlling the population? It remains to be seen how it'll work for them, but the cost/benefit tradeoff for the Chinese government is whether it costs more or less than maintaining the same control with police and censors.

[varjag]

Yes it's a clear attempt to fund the Little Red Book on the private dime. But if the social rating will prove a loss driver for finance sector, it will near inevitably be circumvented in one way or another by the actors while advertising formal compliance.