China is the first country to systematically develop its own social credit system. The system’s main purpose is to address the problem of a low trust society by establishing credit records of personal citizens and other entities in China. The social credit system uses a special method to evaluate the trustworthiness of enterprises, individuals and other organizations by collecting and using their credit information expanding beyond the financial aspects. However, it is viewed from the negative perspective by some western scholars. This article attempts to address the misconceptions of the Chinese social credit system and explains why it is distorted by others. Moreover, a comparison is made between the Chinese social credit system and the American consumer credit system to help clarify the differences between the two legal credit systems to further a deeper understanding of the Chinese social credit system. From that point,objectively, this article also presents a line of justified comments on the social credit system and makes an analysis of the deficiencies in the social credit system. Lastly, this paper aims to explore the methods to perfect the Chinese social credit system and makes sound suggestions to that point.
