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How the One-Child Policy Has Improved Women’s Status in China

An article on Chinese social media argues that the One Child Policy has greatly benefited the status of Chinese women, and that the shift to a so-called Two Child Policy is actually a setback for women’s rights in China. What’s on Weibo explains.

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Female empowerment is perhaps not the first thing that springs to mind when discussing China’s One-Child Policy (1979-2016), which is mainly known for creating hardships for Chinese women. But a recent Feminist Webforum’s article on Chinese social media argues that the One-Child Policy has greatly benefited the status of women in Chinese society, and that the shift to a so-called Two Child Policy is a setback for women’s rights in China. What’s on Weibo explains.

When the Chinese government announced that it would be ending its One-Child Policy in the summer of 2015, 36 years after it was first implemented, the topic exploded on Weibo. Many netizens applauded the news and considered it a step forward in people’s personal freedom and individual rights.

The Two-Child Policy (二孩政策) allows all couples to have a maximum of two children. But now, over a year after it has gone into effect, there are also voices saying that the new family planning policy is actually a setback for women’s rights in China and that the One-Child Policy, as controversial as it might have been, has greatly improved the role of women in society in multiple ways.

 

THE TWO CHILD POLICY: A YEAR LATER

“The vigorous propagation for women to return home to have children goes against the image of the emancipated Chinese woman.”

 

One of the consequences of China’s One-Child Policy, designed to curb the growth of China’s population, is that Chinese society is now ageing. The latest population statistics after the introduction of the ‘Two-Child Policy’ show that 17,86 million children were born in 2016; an increase of 7.9% compared to the year before (when the One-Child Policy was still in place).

But the current population growth might not be enough to combat demographic challenges in the decades to come. Chinese state media are now encouraging couples to have more children, something that became particularly clear during this year’s CCTV Gala and a recent lengthy People’s Daily article that hinted at the legalization of surrogacy to increase the country’s birth rates.

It led to angry reactions on Chinese social media, where many women felt that they were being degraded to “breeding machines”, and that the “vigorous propagation” for women to “return home to have children” goes against the image of the emancipated Chinese woman.

 

ONE-CHILD POLICY: THE SIGNIFICANCE FOR WOMEN

“Slogans propagated that daughters could also carry the honor of the family line, and that girls and boys were equally important for the future of China.”

 

The Feminist Webforum (@女权主义贴吧) recently posted an article (link in Chinese) on Weibo titled “The One-Child Policy’s Three Major Contributions to Chinese Women’s Status,” in which it argued that the China’s One Child Policy (1979-2016) has significantly emancipated Chinese women.

The article looks back at different government’s slogans that were widely propagated during the One-Child Policy, and explains how and why they contributed to a bettered women’s status in China.

It also indicates that the recent developments around the Two Child Policy, with increasing media emphasis on reproduction, is negatively affecting the status of women in Chinese society.

1. Male-Female Equality: Women Can Also Carry on the Family Line (生男生女都一样,女儿也是传后人)

The slogans “It is all the same whether you give birth to a boy or give birth to a girl” (生男生女都一样) and “Daughters also carry on the family line” (女儿也是传后人) were propagated throughout China since the 1980s up to the most remote parts of rural China.

In the patriarchal Chinese society, there is a deep-rooted preference for sons. Boys are expected to carry on the family line, become the laborers, and support the older generations (Sudbeck 2012, 44).

With the implementation of the One-Child Policy, the government strongly pushed the idea of male-female equality. Slogans propagated that daughters could also carry the honor of the family line, and that girls and boys were equally important for the future of China.

Slogan: “Girls and boys are all the hope of the nation.”

The Female Webforum article argues that this widely propagated government stance improved the status of women, as daughters came to play a more important role in the family and received more attention and a better education.

This is also reiterated by Kristine Sudbeck in the article “The Effects of China’s One-Child Policy: The Significance for Chinese Women” (2012), in which she writes that China’s One-Child Policy has indirectly benefited the role of women in society because, among others, singleton daughters received greater parental investment in terms of wealth, pride, and education (43-44).

The improved education levels for women also opened the doors to more non-traditional jobs for women, with which came a greater gender equality – not just within the family, but within the society at large.

In 2014, 64% of Chinese women were in the labor force, and the percentage of women in management positions in China is much higher than that of neighbouring countries like South Korea, Japan, India, or Taiwan (Catalyst 2016, CS 2014: 8).

But the Feminist Webforum writes that since the introduction of the Two-Child Policy, the calls for extended maternity leaves and for women to return home to be a good mother are growing louder every day, potentially harming the (economic) position of women in China in the long run.

2. Promotion of Later Marriage and Later Childbirth (男女晚婚,女方晚育)

Another propagated principle during the One-Child Policy was that of later marriage and later childbirth.

Poster propagating later marriage and later childbirth.

Although the legal age of marrying in China is 20 for women and 22 for men, late marriage (23+ for women and 25+ for men) have been specifically encouraged by Chinese authorities to benefit the state, the family, and the individual.

The propagation of late marriage and childbirth meant that women could first concentrate on their studies and career before taking on the role as wife or mother.

Since January 2016, it seems that getting married later on is no longer encouraged. At the same time the Two-Child Policy was implemented, the Chinese government canceled the ‘late wedding leave’: a 30-day paid work leave to encourage getting married after the age of 25.

The Feminist Webforum article writes that Chinese media have started to encourage women to have children while still attending college, as in this widely published article (link in Chinese) titled: “University students have children while still in school: third-year students already have 2 children, majority does not regret.”

Photo of one of the college students who had her baby early on in her studies, photo by Paper.cn.

Articles such as these falsely suggest that it might be easier to find a job when women are already married with children. But according to the Feminist Webforum, the employment rate of women without children is actually much higher than of those who have had a baby.

Getting married and having a baby after the age of 25, the article argues, is better for a woman’s mental and physical health, as well as for her future education and career. Encouraging women to start having children early on might negatively influence her future and her independence – a setback for female emancipation.

3. Promotion of Excellent Birth & Childrearing (优生优育)

A third and final point mentioned in the article is that under the One-Child Policy the slogan “Superior Birth, Superior Childrearing” (优生优育) was propagated, in which there was an emphasis on conceiving and raising a ‘quality child.’

Government public advertising, saying “excellent childbirth, excellent childrearing, a happy life.”

The article points out that with a general heightened focus on prenatal and postnatal care, thousands of women were saved from maternal death.

Before the One-Child Policy and in its early years, there was a great lack of prenatal care, and many women only relied on midwives while giving birth – if they could afford one at all. The rate of in-hospital delivery increased from 43.7% of women in 1985 up to an in-hospital delivery for rural women of 96.7% in 2011.

The Feminist Webforum points out that in the first half year since the implementation of the Two-Child Policy, there was a staggering 30% increase in maternal mortality. This increase relates to a larger proportion of elder pregnant women, causing more health problems during pregnancy and childbirth. It also has to do with health care resources being unable to deal with the rise in births, and, according to the article, is another reason why the Two Child Policy is not improving the situation of women in China.

 

A ROSE-COLORED PICTURE?

“Although China’s One-Child Policy is known for creating hardships, it has helped to greatly improve the position of women in China.”

 

Is the Feminist Webforum right? Was the One-Child Policy really so beneficial for women? Although China’s One-Child Policy is mainly known for creating hardships for women, studies have shown that it has indeed helped to greatly improve the position of women in China in terms of gender equality, parental investment, educational attainment, career, and in terms of their familial, societal and political participation (Sudbeck 2012, 55).

Although providing very valid points, the Feminist Webforum’s article is making the decades of the One-Child Policy appear somewhat more rose-colored than they were. For example; even if the rate of prenatal complications and maternal deaths greatly improved after the implementation of the One-Child Policy (and have worsened after ending it in 2016), the article does not mention that women with unapproved pregnancies received less prenatal care and had a much higher risk (2.5 x) of maternal death than with an approved pregnancy (Nayak 2008, 14).

It also does not mention female infanticide or the large number of female-selective abortions. In the 1980-2000 period alone, it is estimated that the total number of female selective abortions was around 4 million (Sudbeck 2012, 47). Nor does it mention the abandonment of children, who were mostly girls. Around the turn of the century, China had around one million almost exclusively female orphans.

The One-Child Policy also had other far-reaching consequences. Some couples moved away from mainland China to have more freedom in their reproductive rights, while others paid for expensive fertility drugs (under the policy, having twins or triplets would still count as ‘one’ legal birth).

When placed into a larger perspective, it is apparent that Chinese women have indeed made advantages towards more gender equality within China as a by-product of the One-Child Policy, but that this advancement has come at a high price.

 

WEIBO RESPONDS

“Our reproduction rights are taken from us, step by step.”

 

On Weibo, the Feminist Webforum’s article received over 50,000 views and many comments shortly after it was posted. Many commenters seemed to share similar concerns as the Feminist Webforum, and praised the One Child Policy era while expressing their concerns over the Two Child Policy.

“The Two-Child Policy is the worst news I have heard in years,” one person writes.

“Now they enthusiastically promote for us to return home and have a second baby. Will they promote us to obey our fathers, husbands and sons, and to bind our feet hereafter?”, one commenter writes.

Another female netizen says: “Since the introduction of the ‘two child policy’, male-female relations have been more out of tune, the mortality rate of pregnant women has gone up, and the discrimination on the employment market has increased dramatically. Our reproduction rights are taken from us, step by step.”

Someone else writes: “The family planning policy was not bad, it had so many benefits (..). It was not only in line with the state of society, it also gave women the right to stop giving birth [to multiple children] and to give birth safely.”

But not all netizens agree that the role of women in Chinese society today is all owed to the One-Child Policy.

“It needs to be said that there are many ways to improve women’s status,” one person writes: “and the One-Child Policy is the most inhumane one, which has caused a lot of damage to women’s health. It was never intended to improve the status of women, and is just a by-product.”

Another woman writes: “All I can think of is that one colleague of my mum who was caught with a second (unapproved) pregnancy when she had a big belly of 7-8 months. She was forced to have an abortion.”

Many netizens refer to themselves as ‘the last generation of singleton daughters.’ They suggest that with China’s new family planning policies, there will always be couples having just one son, but if they have one daughter they will try hard to have a second child that is male: “This was the last era of the only daughters – every era is that of the only sons.”

– By Manya Koetse
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References

Catalyst. 2016. “Women In The Workforce: China.” Catalyst, July 8 http://www.catalyst.org/knowledge/women-workforce-china [5.2.17].

Credit Suisse. 2014. “Women in Senior Management.” Credit Suisse, September https://publications.credit-suisse.com/tasks/render/file/index.cfm?fileid=8128F3C0-99BC-22E6-838E2A5B1E4366DF [5.2.17].

Feminist WebForum [女权主义贴吧]. 2017. “独生子女政策对中国女性地位的三大贡献 [The One-Child Policy’s Three Major Contributions to Chinese Women’s Status].” Feminist Webforum / Weibo, February 4 http://www.weibo.com/ttarticle/p/show?id=2309404071219883321876#_rnd1486322999846 [5.2.17].

Nayak, Satyam. 2008. “An Overview of China’s One Child Policy and Health Consequences on Society.” Master of Public Health, The University of Texas School of Public Health.

Sudbeck, Kristine. 2012. “The Effects of China’s One-Child Policy: The Significance for Chinese Women.” Nebraska Anthropologist: Paper 179.

Featured image: part of a slogan on a wall saying “love daughters.”.

©2017 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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6 Comments

6 Comments

  1. Matteo

    February 8, 2017 at 11:47 pm

    Probably they could achieve the same result following the path made by other countries, instead of torturing people for decades.

    • fgt

      February 17, 2017 at 10:49 am

      Like India? Who’s still struggling to implement a three-child policy and suffers from chronic local famines to this day?

      The common misconception is to attempt to compare China with Japan, South Korea and Taiwan and similiar high-income and fully developed countries. All these countries achieved their growth with as little population pressure as China or India is currently attempting. And, yes, they made it. At Easy Mode. Congratulations to them.

      For extremely populated countries like China or India, any economic growth divident will be immediately swallowed up by the masses of poor population who are multiplying exponentially due to natural reasons, such as hardships and insecure resource supplies. Ever wondered why poor people in less developed countries happen to have 20+ children? Because it’s a natural thing to do, if you cant ensure the survival of every child: Humans and animal alike will automatically give birth to as many as they can, so that at least some children will survive to carry on the genetic line. Sounds pretty inhumane and cruel, but that’s nature for you. And as such, extremely populated countries who do not act, happen to be sentenced to eternal poverty.

      China did the right thing: They have curtailed their population growth by brute force, so that the little economic gains at the start of the reform and opening phase wouldnt be swallowed up by the population pressure.

      Look at India for what China would be today, if they didnt torture their people for a greater good.

  2. Shiner

    February 13, 2017 at 8:55 pm

    Not wanting to refute your conclusions, but “one of the highest rate of women in management positions” is incorrect.
    The shown table is in alphabetic order. This should have been picked up easily.
    Also, it might have been more clear in the most recent CS Gender 3000 report of last year, where China has been trailing behind and has actually dropped on the list in the last between 2010 and 2015.
    See also page 8 on
    http://publications.credit-suisse.com/tasks/render/file/index.cfm?fileid=5A7755E1-EFDD-1973-A0B5C54AFF3FB0AE

    • admin

      February 14, 2017 at 12:11 am

      Thank you for the heads up, you are of course completely right – don’t know how I could’ve missed that. It is now adjusted in the article. Appreciate the input. Best, Manya

  3. Jim Harkness

    May 5, 2017 at 12:57 am

    Interesting to see what people are saying about this issue, but most of the woman-benefiting measures mentioned could have happened without the One Child Policy, (and in fact preceded it) and it’s hard not to notice the 50 million missing women and girls that resulted from the Policy. Of course, context is everything. If the Policy had not coincided with the Household Production Responsibility System being instituted in agriculture, many of the negative impacts would have been considerably smaller.

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Backgrounder

Netizens or Not? About Chinese Online Communities & Use of the Term ‘Netizen’

The term ‘netizens’, referring to Chinese internet users, is both loved and hated.

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Chinese internet users are often referred to as ‘netizens’, but some people say the term is outdated and inappropriate. Should something change? What’s on Weibo explores the term and its use in different contexts.

It has been an issue of debate for years; the use of the word ‘netizen’ in English-language media – especially when referring to Chinese internet users.

At What’s on Weibo, it is a word we use in pretty much every article we post. Online media in China is our focus, and how ‘netizens’ deal with social media and trending topics is at the heart of this website.

But many people have had enough of the word ‘netizen.’ Already in 2013, Matt Schiavenza at The Atlantic wrote that the term was “once useful as a way to describe China’s internet users,” but that it is now “meaningless, inaccurate, and misleading.”

Schiavenza argues that “netizens” is mainly used for Chinese internet users who are politically active or outspoken, while there is a huge number of Chinese people who are non-political in their online behavior.

The term has also been discussed among people on Reddit, where some call it a “stupid journalism” term.

At the conclusion of the recent Chinese Internet Research Conference at Leiden University, the term was also briefly discussed in the context of ‘online communities,’ with some scholars deeming the word inappropriate to refer to Chinese internet users – also suggesting that speaking of Chinese “online communities” in itself was problematic to begin with.

One discussion participant suggested that words such as ‘community’ or ‘netizen’ are labels used by outsiders in the academic world or in foreign media, rather than Chinese describing themselves that way – saying it is problematic because it is “our label, not theirs.”

Is this really true? What’s behind the term ‘netizens’? Should Chinese internet users be described with other terms than ‘netizens’? For what reasons?

 

Behind the Word ‘Netizen’

 

The word ‘netizen’ was first coined in 1984 and popularized with the spread of the internet during the 1990s. The word is a blend of the words ‘internet’ and ‘citizen,’ and is (or was) generally used to either refer to people who use the internet, or more specifically, to refer to people who participate in online discussions or belong to ‘online communities’ (Johnson 2013).

The term is also often attributed to net theoretician Michael Hauben, who used it in his 1997 work to define people who “actively contribute toward the development of the Internet” and for a “citizen who used the Internet as a way of participating in political society.”

Already in 2012,Time Magazine elected the term as one of the words that should be banished, suggesting it had become archaic since its launch in the 1980s.

But when looking at the more recent use of the word ‘netizens’ in academia and foreign media, the term is anything but dead. It does seem to be applied far more often to Asian online contexts, e.g. Chinese or Korean online users, than it is used to describe internet users in Europe or America.

The word ‘netizen’ used in random Google News search in 1-5 May period in 2013 and in 2018.

It is often used, for example, to talk about online fans of the K-pop industry or users of the Sina Weibo platform – suggesting that there has been a shift in the use of ‘netizens’ from the 1980s or 1990s to describe any internet user, to more specifically describing those (often Chinese) internet users that are part of a specific online circle.

 

From Netizen to Wangmin

 

One reason why ‘netizen’ is used in the Chinese case specifically, is because Chinese media and social media users use the word ‘wǎngmín’ (网民) very frequently.

Google News results show that the term wangmin (netizen) is constantly used in Chinese media.

Wangmin (网民) literally means ‘net-people’ or ‘net-citizens’ (thus literally: ‘netizens’), and is the generally accepted term to designate internet users in China. The term was described by the China Internet Network Information Center (CNNIC) in 2013 as “Chinese residents who are six or older and have used the Internet at least once in the past six months” (Shen 2013).

The CNNIC has used the term wangmin officially since 1997, the year of its founding, when its first ‘China Wangmin Survey’ (中国网民调查) came out – the same year that Michael Hauben theorized and politicized the word.

The Chinese term wangmin seems to lack the more political implications of the term ‘netizen’ in English in Western countries, which has come to imply that an internet user is politically involved in online issues. Chinese fans of certain music genres or TV series are hardly politically involved in online causes, yet they are still wangmin.

There are (political) implications to the term wangmin on another level, though; in Chinese media, the term is mostly connected to nations. For example; one can speak of ‘American netizens’ (全美网民), ‘Canadian netizens’ (加拿大网民) or ‘Chinese netizens’ (中国网民,国内网民).

There are also instances in which the term is applied to platforms rather than nations. Some Chinese media have used the term ‘Sina Weibo netizens’ (新浪微博网民), for example.

 

Netizens versus Netizens

 

So what does this all mean? Firstly, it means that the use of ‘wangmin’ or ‘netizens’ in the Chinese context is not the same as the way the term ‘netizens’ has come to be used in the English-language Western context.

It also means that the term is not archaic at all. After all, who can claim a word is ‘outdated’ or ‘old-fashioned’ when it is practically being used at all hours of the day on Chinese internet and in Chinese media today? Even though it has been used since 1997, it has proved to be anything but a word trend: wangmin has become a part of normal Chinese vocabulary.

Third, claiming that it is a “stupid journalist term” or “our label, not theirs” also does not do just to the word; in the Chinese context, the term is used far beyond journalism, and more importantly; it is used by Chinese organizations and individuals to describe Chinese internet users, meaning it is not merely a term that is used by non-Chinese to describe Chinese online populations.

 

Online Communities

 

One thing that stands out when talking about ‘netizens’, no matter in what context, is that it is tied to the idea of an ‘online community.’ Much has been researched and said about what constitutes an online community, but for the scope of this article, we could say that it minimally requires some sense of a shared collective identity or some pursue of a shared purpose (Massa 2017, 961).

In the case of China’s online environment, online communities are built in two ways.

In one way, it is constructed at the state level to “define wangmin within the nation-state boundary,” as Yiping Shen (2015) writes in Public Discourses of Contemporary China.

This is, amongst others, very visible in state reports or state media that define “Chinese netizens” (中国网民) in the same way in which citizens are legally recognized subjects of a nation or state, meaning citizens of the PRC. In this way, all of China’s 772 + million internet users are part of this group of ‘netizens’ and have to follow to guidelines the government lays out for Chinese netizens.

In another way, it is used among Chinese companies and internet users to define themselves, either in the way the state has intended it, or at a smaller online community level. And these communities exist everywhere, from small-scale to large-scale, some existing for a long time, some being short-lived; from the long-standing Rage Comics community to temporary groups and Human Flesh Search Engines, to flourishing BBS or WeChat groups.

A platform such as Sina Weibo also clearly defines itself as a ‘community’ (社区), with its ‘Weibo Community Management’ (新浪微博社区管理) being an important part of the site in setting out guidelines for its members.

 

Wangyou: Chinese Online Friends

 

So what options are there for future references to Chinese internet users? Should we just stick to ‘netizens’? Would it more appropriate to use the original Chinese term ‘wangmin,’ or should we perhaps use another widespread term, namely that of ‘wǎngyǒu’?

Besides Chinese internet users defining themselves as wangmin, the word wangyou (网友), literally ‘web friend’, is also often used among netizens to define the members of their online ‘community’ (e.g. Weibo) or Chinese internet users at large.

Jessica Sun (孙慧), linguist and co-founder of the Dutch website Chinatalk, explains that ‘wangyou’ or ‘webfriends’ initially was meant to define those people one knew from cyberspace, when internet just gained traction in China.

Once China’s online population grew bigger, the idea of wangyou also grew to include more people. “It could also refer to a larger group of people who share the same interests or attitudes, instead of just friends,” Sun explains.

Sun compares the use of wangyou to the Chinese word for ‘friend’, pengyou (朋友), which is often used to sound more intimate, although the person addressed is not necessarily really considered a ‘friend.’

According to Sun’s analysis, wangmin (netizen) and wangyou (webfriend) are generally interchangeable, although there are some subtle differences. Sun has some remarks explaining the difference between the two terms:

1. In many cases, wangmin could also be a wangyou, but not the other way around. Wangyou can be used to show a more emotional attachment or personal relation, as in ‘my webfriends’ (我的网友). One can not say ‘my netizens’ (我的网民).

2. While wangyou is more intimate, wangmin is more neutral, and is therefore mainly used by news outlets.

3. The use of the term wangmin or wangyou depends on the attitude of the person who uses it towards a specific person/event, depending on the ‘community’ they are in or the stance they have towards a particular incident.

For example, when Chinese media report about wangyou doing something or being angered about something, it often means this author/publication is siding with these ‘webfriends’.

Headline using ‘wangyou’

The headline featured above (“As policeman bravely sacrifices his life, [some] webfriends are angered about these details“) is a story about a policeman who died on duty while trying to protect pedestrians from an out-of-control car. When some online commenters said that it was the policeman’s job to protect the people, suggesting his death was part of his duty, many other commenters were angered with these comments. By featuring the ‘webfriends’ term in this headline, the publication shows it sides with those ‘webfriends’ who mourn the policeman’s death and who are angered about insensitive comments relating to his death.

Another story, headline above (“Shenyang policeman dies on duty, two netizens detained over insulting comments“), is about another policeman dying on duty due to an attack by a suspect, with two web users commenting that the person attacking the police was a “hero” for doing so. The headline states that “two netizens insulting [police] have been detained” – in such a case, the media report shows a distance towards the commenters – ‘webfriends’ would surely not be used to refer to them.

All in all, it is clear that words such as netizen or wangyou, although they might sound outdated in an English-language context, are anything but outdated in the Chinese context.

Nearly five years after The Atlantic posted its anti-‘netizen’ article, claiming the word “meaningless, inaccurate, and misleading,” recent uses of the term and its ubiquity in (Chinese) media show that it was perhaps the author’s perspective that was flawed, rather than the term itself.

For the time to come, Chinese ‘netizens’ are here to stay.

We’d like to hear your stance! How do you feel about ‘netizens,’ or would you rather see a more frequent use of the original wangmin term? Fill out the poll below:

Coming Soon

By Manya Koetse

With contribution from Jessica Sun at Chinatalk.

References

Hauben, Michael and Ronda Hauben. 1997. Netizens: On the History and Impact of Usenet and the Internet. Computer Society Press: Los Alamitos, CA.

Jones, Paul Anthony. 2013. Haggard Hawks and Paltry Poltroons: The Origins of English in Ten Words.

Massa, Felipe G. 2017. “Guardians of the Internet: Building and Sustaining the Anonymous Online Community.”Organization Studies 38 (7): 959 –988.

Shen, Yiping. 2015. “Netizens, Counter-Memories, and Internet Literature into the New Millennium.” In: Public Discourses of Contemporary China. Chinese Literature and Culture in the World, Chapter 4. Palgrave Macmillan: New York.


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Backgrounder

Baihang and the Eight Personal Credit Programmes: A Credit Leap Forward

“The personal credit era has arrived,” some netizens say.

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Baihang Credit has received ample coverage in Chinese press recently as it was launched as “the first unified personal-credit information firm” of the PRC. It joins forces with Alibaba, Tencent, and six other big companies in further building on China’s credit-based society. What’s on Weibo provides an overview of the developments that have led to the formation of this powerful credit platform.

Three years after eight commercial firms were granted permission by the People’s Bank of China (PBOC) to start their pilot programmes in operating personal credit systems in 2015, none of them have received a license.

Instead, they’ve now become shareholders and active contributors to a new unified platform that has access to an enormous number of personal credit data. At the so-called ‘trust alliance’ (信联) Baihang Credit (百行征信), state level and commercial organizations join forces in further developing China’s credit systems.

How they can share data without harming Chinese recent laws on privacy, however, remains vague.

Some background

An important moment within this development started over twelve years ago (to be precise: on March 20 of 2006), when the People’s Bank of China (PBOC) began operating its own independent Credit Reference Center. The goal of the brand-new center was to set up the reliable credit checking platform which China was still lacking at the time.

At its core, it was tasked with managing a national commercial and consumer credit reporting system, to enable financial institutions to assess borrowers’ creditworthiness.

Screenshot of The Credit Reference Center website.

In November of 2013, during the Third Plenary Session of the 18th CPC Congress, new plans were adopted to also “establish and improve a social credit system to commend honesty and punish dishonesty” (USC 2013), putting more pressure on the formation of a solid credit checking system in China.

Months later, in 2014, the Chinese State Council issued an official notice concerning the construction of a nationwide Social Credit System that was to be rolled out by 2020 (Creemers 2014).

 

Three Years of the “Credit Leap Forward”

 

It is perhaps no coincidence that not too long after the formal announcement of these plans, that would lead to a more credit-based Chinese society, the PBOC Credit Center opened its doors to eight Chinese companies to work on trial programmes to prepare for operating their own personal credit information businesses.

At the time, in 2015, the PBOC’s Credit Center had been around for nearly a decade, yet still ‘only’ covered 25% of the Chinese population, leaving ample risks in the control process of Chinese financial services (Yang 2017).

You could say that 2015 was an important year in which competition for China’s multi-billion personal credit investigation market really began, along with the flourishing of China’s Internet population and the growing demand for personal online data information (Jun 2015). A recent Caixin column by Xinhai Liu (刘新海), associate researcher by at the Credit Reference Center, even calls the 2015-2018 period the “Credit Great Leap Forward” (“征信大跃进的三年”).

Besides that new personal credit rating tech firms started to pop up, the year 2015 was also the year when misconceptions arose in foreign media regarding these existing credit systems.* ACLU called it “nightmarish,” falsely claiming that all Chinese would be “measured by a score between 350 and 950, which is linked to their national identity card” and that “the government has announced that it will be mandatory by 2020.”

As explained in our recent article about this issue, these discussions – that continue in foreign media to this day – often blur the lines between the national Social Credit system and a number of private programs. (To understand more about the difference between the government’s Social Credit system and the commercial ones, please read the previous article we featured on this topic.)

These misunderstandings partly come from the fact that both the government’s plans on introducing their ‘Social Credit System’ (社会信用体系) and the Central Bank’s endeavors to build a stronger personal credit industry (个人征信行业) were major developments in the period from 2013-2015 up to the present.

 

The Eight Programmes

 

With such a strong demand for solid credit rating systems, why have none of the eight approved tech firms received their license, over three years after starting pilot operations?

One of the main problems with commercial services such as the well-known ‘Sesame Credit’ is, according to PBOC spokesperson Wan Cunzhi, that they are all “isolated islands” (“信息孤岛”) of non-shared data, that they are lacking in independence, and that their data management is not strong enough (Yang 2017).

The coming-together of these “islands” solves this problem and forms one solid platform under the ‘Baihang’ label. Which eight companies does this concern? An overview:

1. Sesame Credit (芝麻信用)

This is the best-known commercial personal credit score programme, implemented by Alibaba’s Ant Financial. Sesame Credit already had 520 million users as of 2017.

Sesame Credit example scores explained, from 385 being in the low range to 731 being in the ‘good’ range.

Sesame Credit was launched in 2015. Because it is part of the Alibaba family, Sesame Credit has an enormous amount of data at its disposal, from e-commerce sites to finance products (Taobao, Tianmao, Alipay, etc), through which it compiles users’ own scores, going from 350-950, for those who have opted into the program. The scores are based on a number of things, including people’s payment history, their contacts and network, and online behavior.

2. Tencent Credit (腾讯征信)

Since the Tencent company currently hosts 55% of China’s mobile internet usage on its platforms (Marr 2018), it has also an enormous amount of data at its disposal. Similar to Sesame Credit, Tencent Credit works with a 300-850 score system. It officially launched a trial of its score programme in January of 2018, but then took it down shortly after.

3. Kaola Credit (考拉征信)

Koala Credit is an independent third-party credit company established by the Shenzhen-based Lakara (拉卡拉) financial services company. Koala Credit was launched in May of 2015, around the same time as Sesame Credit launched its program. Lakara has strategic and powerful partnerships with China Unionpay, five major banks, and hundreds of other financial institutions. Lakara and Koala Credit jointly founded a pioneering lab in China that focuses on big data models. The University of the Chinese Academy of Sciences is involved in this project (Zhuo et al 2016, 299).

4. Pengyuan Credit (鹏元征信)

Established in 2005, Pengyuan Credit is amongst the oldest personal credit investigation firms of the eight selected by the PBOC. The company states on its website that its main goal since 2005 has been to “create a credit reporting ecosphere on the Internet,” shifting from traditional credit rating systems to online credit rating methods.

5. Sinoway Credit (华道征信)

The Beijing Sinoway Credit was established in 2013 by four large financial companies. As explained by BJReview (2016), Sinoway is among those companies (such as Zhima and Tencent) that accumulate data from their business rather than using traditional algorithms to collect financial and public data. They have exclusive access to enterprise data (Zhuo et al 2016, 299).

6. Qianhai Credit Service (深圳前海征信)

Qiu Han, CEO of Qianhai.

Another company established in 2013, Qianhai Credit is based in Shenzhen. It was launched by financial giant Pingan. The current CEO is the female big data specialist Qiu Han (邱寒).

7. China Chengxin Credit (中诚信征信)

The Beijing-based China Chengxin Credit company was founded in 2005, established by the China Chengxin Credit Management group. The firm provides personal credit information and companies and market research services. As described by the China Money Network, its database is connected to local administrations for industry and commerce, police, courts, telecom service providers to provide comprehensive credit information.

8. Intellicredit (中智诚征信)

Intellicredit is a Beijing-based independent, third-party credit registry. CEO Li Xuan (李萱) has previously expressed the company’s goal to handle any loopholes that let scammers get away with fraud in China’s online financial environment. The company is experienced in credit industries both in China and abroad, and its team has also worked on the establishment of the credit reporting system of the PBOC (Zhuo et al 2016, 299).

 

Baihang & Allies: An Abundance of Personal Data

 

The formal launch of Baihang Credit (百行征信), the “first unified personal credit information firm” of China, has become big news in Chinese media, with some calling it a personal credit industry game changer.

Lauch of Baihang Credit, May 23 2018 (photo via Weibo).

Baihang Credit is a joint establishment of the aforementioned eight and the China Internet Finance Association.* It received its license in February of this year. The firm officially opened for business on May 23rd of 2018.

While the China Internet Finance association reportedly holds 36% of the Baihang firm, the other eight shareholders each hold 8% (Zhang & Liu 2018).

^

The eight companies are not just financial investors, but also active contributors and sharers of technology, resources, and data for the Baihang firm. The launch of this joint establishment means that both state-level institutions and commercial enterprises combine their efforts in building a strong personal credit investigation and service platform; the new system now links data collected by these powerful firms such as Tencent to the state-level China Internet Finance Association, which in itself is an initiative by the People’s Bank of China.

Besides basic data including personal information, education level, salaries or employer, companies such as Sesame Credit or Tencent also have access to a rich collection of consumer data, ranging from social media, e-commerce purchases, online travel data, to location, phone records and even social connections.

The eight firms will also play an important role in Baihang’s management. Sesame Credit, Tencent Credit, Qianhai Credit, Sinoway and Koala Credit have all entered the company’s board of directors. The other three companies will join the board of supervisors (Sina Finance 2018). The 57-year-old Zhu Huanqi (朱焕启) will be Baihang’s CEO and president; he previously worked at Huida Asset Management.

The PBOC told Caixin Global that all parts of the eight companies that previously dealt with personal credit ratings will now be incorporated into Baihang. The other parts can continue to operate as data service providers. In the future, Sesame Credit, for example, will continue to research commercial credit services.

 

Many Questions Linger

 

While the recent alliance has received ample attention in Chinese media as an important moment in China’s transforming alleged ‘credit-based’ society, many questions still linger.

One Nanjing research institute writes on Weibo: “The joining of these companies means they can share big data. This also means that if a person is behind [in payments] on one platform, they will also have no access to loans on any of the others.”

But is it all about sharing personal financial credit information, or is this about the sharing of other data as well? What are the legal implications of Baihang operations? And to what extent, if at all, will the system link to the upcoming nationwide Social Credit System?

Caixin Global noted that Baihang Credit will face challenges regarding Chinese Cybersecurity Law, which imposes strict limits on ‘secondary uses’ of data beyond its original purpose, and requires individual authorization when personal data is transferred from one institution to another (Sacks 2018; Zhang & Liu 2018).

In this Caixin article, the PBOC’s spokesperson would not elaborate on how Baihang will collect and use personal data. He was only quoted in saying only that contributions to Baihang will be handled “according to market rules.”

 

“Personal Credit Era has Arrived”

 

Despite the many articles about Baihang in Chinese media, it has not become a much-discussed topic on social media; netizens discussing Chinese credit systems seem more concerned with the height of their Sesame Credit score.

One Weibo user, however, did write about the Baihang alliance, commenting: “The personal credit era has arrived” (“个人信用时代到来”).

Other people worry about the impact of this alliance, saying: “You’ll see that if you have a negative balance on your bank account, you won’t be able to use the public bathroom anymore.” (Recently, various cities in China are upgrading their public toilets, integrating AI features such as facial recognition for people to receive free toilet paper.)

Some commenters simply call the companies that have joined under Baihang “a pile of trash.”

Although Sesame Credit will not receive a license to operate its personal credit investigation business, it is highly probable that users of their credit programme will still be able to enjoy the perks of, among many other things, entering libraries for free or riding rental bikes without deposit with a high score.

“I’ve just arrived in Hangzhou and can do many things for free,” one person wrote: “I feel like my Credit Score is omnipotent.”

Baihang’s recent alliance is about to make Chinese personal credit scores even more omnipotent – the ‘Credit Leap Forward’ is well underway.

By Manya Koetse


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* In an article from December of 2015, for example, The Independent suggested that “China has created a social tool which gives people a score for how good a citizen they are,” describing how “China” had put forward “a concept straight out of a cyberpunk dystopia” named Sesame Credit.

* The Chinese Internet Finance Association, also known as the NIFA (National Internet Finance Association) was established in March of 2015 upon approval by the Chinese State Council and Ministry of Civil Affairs. It is a state-level organization.

References (others linked directly within text)

Creemers, Rogier. 2014. “Planning Outline for the Construction of a Social Credit System (2014-2020).” China Copyright and Media, 14 June China https://chinacopyrightandmedia.wordpress.com/2014/06/14/planning-outline-for-the-construction-of-a-social-credit-system-2014-2020/ [10.6.18].

Creditchina. 2018. “百行征信入场,8家股东剥离个人征信业务.” CreditChina.gov, 4 June http://www.creditchina.gov.cn/gerenxinyong/gerenxinyongliebiao/201806/t20180604_117132.html [10.6.18].

Huang, Zhiling. 2016. “Six Obstacles to Producing Reliable Big-Data Credit Reports.” BJ Review, 15 December http://www.bjreview.com/Business/201612/t20161212_800074419.html [9.6.18].

Jun, Wang. 2015. “Road to Credit.” Beijing Review, 3 August http://www.bjreview.com.cn/business/txt/2015-08/03/content_698269.htm [9.6.18].

Marr, Bernard. 2018. “Artificial Intelligence (AI) In China: The Amazing Ways Tencent Is Driving It’s Adoption.” Forbes, 4 June https://www.forbes.com/sites/bernardmarr/2018/06/04/artificial-intelligence-ai-in-china-the-amazing-ways-tencent-is-driving-its-adoption/#5130d54b479a [10.6.18].

Sacks, Samm. 2018. “New China Data Privacy Standard Looks More Far-Reaching than GDPR” CSIS, 29 January https://www.csis.org/analysis/new-china-data-privacy-standard-looks-more-far-reaching-gdpr [9.6.18].

Sina Finance. 2018. “百行征信揭开面纱 芝麻信用腾讯征信等五家入董事会.” sina Finance, 4 January http://finance.sina.com.cn/money/bank/bank_yhfg/2018-01-05/doc-ifyqinzs8775295.shtml [10.6.18].

USC. 2013. “Decision Of The Central Committee Of The Communist Party Of China On Some Major Issues Concerning Comprehensively Deepening The Reform, November 12, 2013.” USC, 12 November https://china.usc.edu/decision-central-committee-communist-party-china-some-major-issues-concerning-comprehensively [10.9.18].

Yang, Felix. 2017. “Is Xinlian the answer to the Individual Credit Checking System in China?” Kapronasia, 25 Aug https://www.kapronasia.com/china-banking-research-category/item/886-is-xinlian-the-answer-to-the-individual-credit-checking-system-in-china.html [10.6.18].

Zhang, Yuzhe, and Liu Xiao. 2018. “Launch of Unified Platform Boots Private Firms From Personal Credit Business.” Caixin Global, May 28 https://www.caixinglobal.com/2018-05-28/launch-of-unified-platform-boots-private-firms-from-personal-credit-business-101258187.html [10.6.18].

Zhuo Huang, Yang Lei & Shihan Shen. 2016. “China’s personal c>edit reporting system in the internet finance era: challenges and opportunities.” China Economic Journal (9:3): 288-303.

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What’s on Weibo provides social, cultural & historical insights into an ever-changing China. What’s on Weibo sheds light on China’s digital media landscape and brings the story behind the hashtag. This independent news site is managed by sinologist Manya Koetse. Contact info@whatsonweibo.com. ©2014-2018

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