Big data meets Big Brother as China moves to rate its citizens

The Chinese government plans to launch its Social Credit System in 2020. The aim? To judge the trustworthiness – or otherwise – of its 1.3 billion residents

But now imagine a system where all these behaviours are rated as either positive or negative and distilled into a single number, according to rules set by the government. That would create your Citizen Score and it would tell everyone whether or not you were trustworthy. Plus, your rating would be publicly ranked against that of the entire population and used to determine your eligibility for a mortgage or a job, where your children can go to school – or even just your chances of getting a date.

.. “It is very ambitious in both depth and scope, including scrutinising individual behaviour and what books people are reading. It’s Amazon’s consumer tracking with an Orwellian political twist,”

.. by 2020 it will be mandatory

.. The behaviour of every single citizen and legal person (which includes every company or other entity)in China will be rated and ranked, whether they like it or not.

.. In this marriage between communist oversight and capitalist can-do, the government has given a licence to eight private companies to come up with systems and algorithms for social credit scores.

The first is with China Rapid Finance, a partner of the social-network behemoth Tencent and developer of the messaging app WeChat with more than 850 million active users. The other,

Sesame Credit, is run by the Ant Financial Services Group (AFSG), an affiliate company of Alibaba.

.. the real star of Ant is AliPay, its payments arm that people use not only to buy things online, but also for restaurants, taxis, school fees, cinema tickets and even to transfer money to each other.

.. Sesame Credit has also teamed up with other data-generating platforms, such as Didi Chuxing, the ride-hailing company that was Uber’s main competitor in China before it acquired the American company’s Chinese operations in 2016, and Baihe, the country’s largest online matchmaking service. It’s not hard to see how that all adds up to gargantuan amounts of big data that Sesame Credit can tap into to assess how people behave and rate them accordingly.

.. the five factors taken into account. The first is credit history. For example, does the citizen pay their electricity or phone bill on time? Next is fulfilment capacity, which it defines in its guidelines as “a user’s ability to fulfil his/her contract obligations”. The third factor is personal characteristics, verifying personal information such as someone’s mobile phone number and address. But the fourth category, behaviour and preference, is where it gets interesting.

.. Under this system, something as innocuous as a person’s shopping habits become a measure of character. Alibaba admits it judges people by the types of products they buy. “Someone who plays video games for ten hours a day, for example, would be considered an idle person,” says Li Yingyun, Sesame’s Technology Director. “Someone who frequently buys diapers would be considered as probably a parent, who on balance is more likely to have a sense of responsibility.” So the system not only investigates behaviour – it shapes it. It “nudges” citizens away from purchases and behaviours the government does not like.

.. As the government document states, the social credit system will “allow the trustworthy to roam everywhere under heaven while making it hard for the discredited to take a single step”... there have been three critical “de-centering shifts” that have altered our view in self-understanding:

  1. Copernicus’s model of the Earth orbiting the Sun;
  2. Darwin’s theory of natural selection; and
  3. Freud’s claim that our daily actions are controlled by the unconscious mind.
  4. .. Floridi believes we are now entering the fourth shift, as what we do online and offline merge into an onlife. He asserts that, as our society increasingly becomes an infosphere, a mixture of physical and virtual experiences, we are acquiring an onlife personality – different from who we innately are in the “real world” alone.

.. Where these systems really descend into nightmarish territory is that the trust algorithms used are unfairly reductive. They don’t take into account context. For instance, one person might miss paying a bill or a fine because they were in hospital

.. Professor Wang Shuqin from the Office of Philosophy and Social Science at Capital Normal University in China recently won the bid to help the government develop the system that she refers to as “China’s Social Faithful System”. Without such a mechanism, doing business in China is risky, she stresses, as about half of the signed contracts are not kept.

.. “The behaviour of the majority is determined by their world of thoughts. A person who believes in socialist core values is behaving more decently.” She regards the “moral standards” the system assesses, as well as financial data, as a bonus.

.. the State Council’s aim is to raise the “honest mentality and credit levels of the entire society” in order to improve “the overall competitiveness of the country”

 

Making China Great Again

As Donald Trump surrenders America’s global commitments, Xi Jinping is learning to pick up the pieces.

The hero, Leng Feng, played by the action star Wu Jing (who also directed the film), is a veteran of the “wolf warriors,” special forces of the People’s Liberation Army. In retirement, he works as a guard in a fictional African country, on the frontier of China’s ventures abroad. A rebel army, backed by Western mercenaries, attempts to seize power, and the country is engulfed in civil war. Leng shepherds civilians to the gates of the Chinese Embassy, where the Ambassador wades into the battle and declares, “Stand down! We are Chinese! China and Africa are friends.” The rebels hold their fire, and survivors are spirited to safety aboard a Chinese battleship.

.. For decades, Chinese nationalism revolved around victimhood: the bitter legacy of invasion and imperialism, and the memory of a China so weak that, at the end of the nineteenth century, the philosopher Liang Qichao called his country “the sick man of Asia.” “Wolf Warrior II” captures a new, muscular iteration of China’s self-narrative, much as Rambo’s heroics expressed the swagger of the Reagan era.

.. “In the past, all of our movies were about, say, the Opium Wars—how other countries waged war against China,” he said. “But Chinese people have always wanted to see that our country could, one day, have the power to protect its own people and contribute to peace in the world.”

.. For years, China’s leaders predicted that a time would come—perhaps midway through this century—when it could project its own values abroad. In the age of “America First,” that time has come far sooner than expected.

.. Trump often portrays America’s urgent task as one of survival. As he put it during the campaign, “At what point do you say, ‘Hey, we have to take care of ourselves’? So, you know, I know the outer world exists and I’ll be very cognizant of that, but, at the same time, our country is disintegrating.”
.. China’s approach is more ambitious. In recent years, it has taken steps to accrue national power on a scale that no country has attempted since the Cold War, by increasing its investments in the types of assets that established American authority in the previous century: foreign aid, overseas security, foreign influence, and the most advanced new technologies, such as artificial intelligence.
.. It has become one of the leading contributors to the U.N.’s budget and to its peacekeeping force, and it has joined talks to address global problems such as terrorism, piracy, and nuclear proliferation.
.. This was an ironic performance—for decades, China has relied on protectionism—but Trump provided an irresistible opening. China is negotiating with at least sixteen countries to form the Regional Comprehensive Economic Partnership, a free-trade zone that excludes the United States, which it proposed in 2012 as a response to the T.P.P. If the deal is signed next year, as projected, it will create the world’s largest trade bloc, by population.
.. By setting more of the world’s rules, China hopes to “break the Western moral advantage,” which identifies “good and bad” political systems
.. Meng Hongwei, a Chinese vice-minister of public security, became the first Chinese president of Interpol, the international police organization; the move alarmed human-rights groups, because Interpol has been criticized for helping authoritarian governments target and harass dissidents and pro-democracy activists abroad.

.. Moreover, China’s economic path is complicated by heavy debts, bloated state-owned enterprises, rising inequality, and slowing growth. The workers who once powered China’s boom are graying.

.. In 2000, the U.S. accounted for thirty-one per cent of the global economy, and China accounted for four per cent. Today, the U.S.’s share is twenty-four per cent and China’s fifteen per cent.

.. in the past we were used to going to the White House to get our work done,” Shivshankar Menon, India’s former foreign secretary and national-security adviser to the Prime Minister, told me. “Now we go to the corporations, to Congress, to the Pentagon, wherever.”

.. everybody else in the world will look around and say, I want to be friends with both the U.S. and the Chinese—and the Chinese are ready, and I’ll start with them.”

.. He presented China as “a new option for other countries,” calling this alternative to Western democracy the zhongguo fang’an, the “Chinese solution.”

.. The state press ran a profile of Xi that was effusive even by the standards of the form, depicting him as an “unrivalled helmsman,” whose “extensive knowledge of literature and the arts makes him a consummate communicator in the international arena.”

.. Xi has inscribed on his country a rigid vision of modernity. A campaign to clean up “low-end population” has evicted migrant workers from Beijing, and a campaign against dissent has evicted the most outspoken intellectuals from online debate.

.. Foreign universities with programs in China, such as Duke, have been advised that they must elevate a Communist Party secretary to a decision-making role on their local boards of trustees.

.. The Party is encouraging dark imaginings about the outside world: posters warn the public to “protect national secrets” and to watch out for “spies.”

.. Last June, Yao Chen, one of China’s most popular actresses, received a barrage of criticism online after she tried to raise awareness of the global refugee crisis. (She was forced to clarify that she was not calling for China to accept refugees.)

.. In Rao’s view, Trump’s “America First” slogan is an honest declaration, a realist vision stripped of false altruism and piety.

.. “In this world, power speaks,” he said, making a fist, a gesture that Trump adopted in his Inauguration speech and Xi displayed in a photo taken at the start of his new term.

.. “I think Trump is America’s Gorbachev.” In China, Mikhail Gorbachev is known as the leader who led an empire to collapse. “The United States will suffer,” he warned.

.. In 1991, when Bush, Sr., launched the war against Iraq, it got thirty-four countries to join the war effort. This time, if Trump launched a war against anyone, I doubt he would get support from even five countries.

.. For Chinese leaders, Yan said, “Trump is the biggest strategic opportunity.” I asked Yan how long he thought the opportunity would last. “As long as Trump stays in power,” he replied.

.. When Trump won, the Party “was in a kind of shock,”

.. “They feared that he was their mortal enemy.” The leadership drafted potential strategies for retaliation, including threatening American companies in China and withholding investment from the districts of influential members of Congress.

.. Before he entered the White House, China started assembling a playbook for dealing with him.

.. “China knows Trump can be unpredictable, so we have weapons to make him predictable, to contain him. He would trade Taiwan for jobs.”

.. there were two competing strategies on China. One, promoted by Stephen Bannon, then the chief strategist, wanted the President to take a hard line, even at the risk of a trade war. Bannon often described China as a “civilizational challenge.” The other view was associated with Jared Kushner, Trump’s son-in-law and adviser, who had received guidance from Henry Kissinger and met repeatedly with the Chinese Ambassador, Cui Tiankai. Kushner argued for a close, collegial bond between Xi and Trump, and he prevailed.

.. While Xi was at the resort, the Chinese government approved three trademark applications from Ivanka’s company, clearing the way for her to sell jewelry, handbags, and spa services in China.

.. During the transition, Kushner dined with Chinese business executives while the Kushner Companies was seeking their investment in a Manhattan property.

.. In May, Kushner’s sister, Nicole Kushner Meyer, was found to have mentioned his White House position while she courted investors during a trip to China.

.. During the Mar-a-Lago meetings, Chinese officials noticed that, on some of China’s most sensitive issues, Trump did not know enough to push back.

.. “Trump is taking what Xi Jinping says at face value—on Tibet, Taiwan, North Korea,”

.. “The Chinese felt like they had Trump’s number,” he said. “Yes, there is this random, unpredictable Ouija-board quality to him that worries them, and they have to brace for some problems, but, fundamentally, what they said was ‘He’s a paper tiger.’ Because he hasn’t delivered on any of his threats. There’s no wall on Mexico. There’s no repeal of health care. He can’t get the Congress to back him up. He’s under investigation.”

.. a Beijing think tank, published an analysis of the Trump Administration, describing it as a den of warring “cliques,” the most influential of which was the “Trump family clan.”

.. The Trump clan appears to “directly influence final decisions” on business and diplomacy in a way that “has rarely been seen in the political history of the United States,” the analyst wrote. He summed it up using an obscure phrase from feudal China: jiatianxia—“to treat the state as your possession.”

Which Nation Does the World Trust Most? (Hint: Follow the Dollar)

When businesses in two countries — say, India and Argentina — want to conduct a deal, they almost always arrange payment not in rupees or pesos but in dollars. Everyone wants to hold the world’s most trusted and liquid currency. Nearly 90 percent of bank-financed international transactions are conducted in dollars, a share that is close to all-time highs.

.. History also suggests that economic size alone will not be enough to propel China to financial superpower status. From 1450 through the late 1700s, the leading reserve currency was held by smaller countries — first Portugal, followed by Spain, the Netherlands and France. These nations were all major trading and military powers with credible financial systems, but not one was the world’s largest economy.
.. Throughout those centuries, the leading economy was primarily China. It never gained the advantages of having the leading reserve currency because, then as now, its financial system lacked credibility.

China Mistakenly Challenges Andrew Jackson to a Duel

China Mistakenly Challenges Andrew Jackson to a Duel USS Ronald Reagan and ships of Carrier Strike Group 5 transit the Pacific Ocean in June 2017.

A Chinese diplomat’s insulting words invite a vigorous response from the U.S. The United States Navy will be making a port call in Taiwan in the near future. The only questions that remain are where, when, and how many ships of what type will drop anchor or tie up at Taiwanese piers. Of course, this may cause a war to break out in Asia, but it won’t be one of the United States’ making. We owe this troubling possibility to a China whose rising sense of anticipatory greatness is at odds with its capacity to execute a successful war. Hubris stimulated a Chinese official, Li Kexin, who is attached to its embassy in Washington, D.C., to threaten war against the United States. Li was responding to fairly normal language within the 2018 National Defense Authorization Act that allowed for mutual port visits between American and Taiwan naval vessels. In response, Li stated: “The day that a U.S. Navy vessel arrives in Kaohsiung [Taiwan’s main deep-water port] is the day that our People’s Liberation Army unifies Taiwan with military force.”

Under these conditions, the United States has no choice but to send the United States Navy to Taiwan for a port visit, and to do so in a big way. The USS Ronald Reagan, a Nimitz-class super carrier based in Japan, with its entire embarked air wing of 65 strike fighters and reconnaissance aircraft and its accompanying escort strike group of Ticonderoga-class Aegis cruisers and Arleigh Burke-class ballistic-missile-defense destroyers, should quickly sortie to Taiwan. They should divide up, with one portion of the strike group transiting down the strait that separates the island from China and the other coming down the eastern coast, meeting up at the southern tip to escort the Reagan into port at Kaohsiung. At that point, the other strike-group ships should either take up station north and south of Taiwan, with their Aegis radars at full alert given the nature of Mr. Li’s threat, or rotationally enter other ports in Taiwan for friendly port visits. The Ohio-class guided-missile submarine Michigan, carrying 154 Tomahawk missiles, should also make an appearance, before quietly disappearing into the depths to continue its lonely patrols. Such a move would be an effective demonstration of American naval coercive diplomacy worthy of Theodore Roosevelt.

.. Additionally, the United States should consider a robust, healthy defensive-arms sale package for Taiwan in the coming year. Surface ships and fighter aircraft, top-of-the-line fifth-generation stealth fighters, should be part of the package,

..All of this will be viewed by China as escalatory, and it should be, but the Chinese must be reminded that it was their intemperate language that started the upwards climb.

.. Walter Russell Mead identified four schools of U.S. foreign policy; the

  1. pro-business Hamiltonians, the
  2. liberal-order Wilsonians, the
  3. realist Jeffersonians, and the
  4. mercurial, exceptionalist Jacksonians.

The election of President Donald Trump signaled the return of the Jacksonian impulse for the first time in a generation

.. And when it comes to war? Mead states that “when an enemy attacks, Jacksonians spring to the country’s defense” viscerally, and Jacksonians, like their namesake Andrew Jackson, will not stop until honor is satisfied. It is a dangerous impulse to stimulate, as China’s Li Kexin has done. China owes the United States a public apology. It now needs to accept a U.S. Navy port visit to Taiwan with a minimum of protests

.. Jerry Hendrix is a retired U.S. Navy captain, an award-winning naval historian ..