The Chinese social credit system quantifies citizen's economic and social reputation. Due to its secretive nature, the exact calculation of scores is currently unknown. However, data such as finances, social media activity, health records, and even who people associate with could be influencing factors. According to a Forbes article detailing the system, nearly every aspect of one's personal life is monitored and accounted for. Those who do not adhere to state prescribed social and economic obligations are subject to lower scores. Under this system, citizens can be both rewarded and punished for their behavior. While the US financial credit system is intended to protect lenders, some feel that China's system is one simply seeking to assure citizen's compliance to the state. Some punishments include denying travel, excluding children from school admission, public shaming, denying access to goods, and denying access to jobs. As previously mentioned, this score not only applies to individuals, but businesses as well.

All companies that hold a mandatory Chinese business license are subject to this system and following its full implementation, many Western companies will likely feel that this is another just obstacle obstructing in their ability to do business in China. I believe this could have significantly negative effects on foreign direct investment in China. Should China choose to remain a part of the global economic system, I believe they should reevaluate why they are choosing to implement such a system.