China watchdog works on online credit blacklist system to punish debt defaulters and trouble-makers

China’s internet watchdog is reportedly working on a blacklist for credit defaulters in cyberspace as Beijing tightens its grip over the world’s biggest online community, in which more than 800 million people shop, chat, post and watch videos online.

The Cyberspace Administration of China is stepping up research on “building a credit blacklist system for the internet and a joint punitive mechanism” for misconduct online in an aim to boost cyberspace integrity via improved systems and regulations, said Liu Liehong, deputy director of the administration on Monday.

Liu said at the China Internet Integrity Conference in Beijing that all websites should have “zero tolerance” on credit defaulters in cyberspace and should voluntarily clean up “locusts” who violate rules frequently or conduct activity with “lack of credit”, according to mainland media reports.

Building a blacklist to name and shame misconduct in cyberspace is likely part of China’s broader plan for a social credit system. First announced in 2014, China is creating a system to rank all of its citizens based on their “social credit” by 2020.

The exact methodology is not public knowledge but behaviour such as reckless driving, smoking in non-smoking zones, and refusing to pay debts could all lead to a drop in credit score, which could lead to punishments such as being banned from air travel or staying in reputable hotels.

Without disclosing a timetable for the cyberspace blacklist, Liu urged all websites to speed up production of a credit management system, implementing real-name registration for internet users and establishing files that can reflect the online creditworthiness of customers.