China's social credit plan: why investors must be wary

Communist China’s wild plan to create a virtual credit score for every individual could seriously affect how business is conducted in every sector. Here's how it could affect you.

Have you ever missed a credit card payment If so the consequences might have included late payments or difficulty in obtaining personal loans. But if you are living in China after 2020, the outcome may be much more serious than you could have ever imagined.

In a move that is bound to drastically change the way Chinese people live and interact with each other, Beijing has proposed to introduce a universal credit scoring system for every individual, company and government entity just three years from now.

In practice, every individual will be assigned a virtual credit score that will determine their creditability relative to the others. What...

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