I several times heard accusations of it being fake, but never once saw any credible source, proving it's fake. So I still don't know where these accusation came from.
Your logic is backwards. Neither Extra Credit or you cited any credible sources to prove the terrible outcomes of such system claimed in that YouTube video is accurate or true.
Note that I don't totally disagree with Extra Credit in that such credit rating system may potentially be abused by government. However, from this Chinese version of wikipedia page of Sesame Credit[1], it specifically read as those credit rating agencies are independent 3rd party entities. Also in the use cases, it mentions online shopping transactions and dating site records, car rentals but nowhere does it mention social networking sites activities(I mean people don't talk about radical political views in their dating site profiles, do they?) like what Extra Credit claim Sesame Credits will source data from.
Note that I don't totally disagree with Extra Credit in that such credit rating system may potentially be abused by government. However, from this Chinese version of wikipedia page of Sesame Credit[1], it specifically read as those credit rating agencies are independent 3rd party entities. Also in the use cases, it mentions online shopping transactions and dating site records, car rentals but nowhere does it mention social networking sites activities(I mean people don't talk about radical political views in their dating site profiles, do they?) like what Extra Credit claim Sesame Credits will source data from.
[1]: http://baike.baidu.com/view/12108011.htm