MxM News

Quick Hit:

Beijing released new guidelines Monday to revamp its social credit system, promising stronger information controls while deepening the system’s reach across China’s economy and society. Critics say the move reinforces the Communist Party’s grip under the banner of “market efficiency.”

Key Details:

• The guideline was issued by top Chinese government and Communist Party offices, listing 23 measures to expand and standardize the social credit system.
• It aims to integrate the credit system across all sectors of China’s economy to support what Beijing calls “high-quality development.”
• Officials claim the new framework will respect information security and individual rights—despite growing global concerns over surveillance and state overreach.

Diving Deeper:

China is doubling down on its social credit system with a newly issued guideline meant to “improve” and expand the controversial surveillance-driven program. Released by both the Communist Party’s Central Committee and the State Council, the document outlines 23 specific measures aimed at building a unified national credit system that will touch nearly every corner of Chinese society.

Framed as a tool for “high-quality development,” the guideline declares that credit assessments will increasingly shape the rules of engagement for businesses, government agencies, and individual citizens. The system, according to the National Development and Reform Commission (NDRC), has already played a role in shaping China’s financial services, government efficiency, and business environment.

Critics of the social credit system have long warned that it serves as an instrument of authoritarian control—monitoring citizens’ behavior, punishing dissent, and rewarding obedience to the Communist Party. By integrating credit data across all sectors and enforcing a “shared benefits” model, the new guideline appears to entrench, not ease, the Party’s involvement in everyday life.

Still, Beijing is attempting to temper foreign and domestic concerns over privacy. The NDRC emphasized that the system is being built on the “fundamental principle” of protecting personal data. Officials pledged to avoid excessive data collection and crack down on any unlawful use of information.

From the Daily Caller News Foundation

By J.D. Foster

“Liberation Day” has come. So what does it mean? Beats the hell out of me.

What we know is that President Trump’s avalanche of tariffs was to hit a peak on April 2; not end, mind you; not necessarily “the” peak, as more could be on the way; but a peak.

No Trump policy more completely breaks with America’s past than his “beautiful” tariffs on just about everything coming into the United States from just about anywhere.

Will this new policy liberate American manufacturing from foreign shackles? Will it usher in a new era of prosperity, keeping in mind the United States had for many years the consistently best-performing economy in the industrialized world, even overcoming the many inane obstacles erected by the Biden-Harris Administration?

Or will it leave the United States isolated, friendless, and weakened?

The correct answer at this point is no one knows, not even the bloviating talking heads on TV confidently predicting demise or Shangri-la.

Think of it this way. Suppose you’re a restaurant chef and a woman hands you a new recipe. Her father turns 75 soon and they want to have a party at the restaurant. The recipe is for the father’s favorite dish, one her mother made for years.

The recipe looks old, with odd ingredients and processes you’ve not seen before. Now judge it as a chef.

You can’t. Even as you start chopping and dicing, mixing ingredients as instructed, you’re not too sure how this is going to turn out. You have to wait until the dish is on the plate and taste it.

That’s the case with Trump’s tariffs. How will this all turn out? It’s too soon to tell.

The stock market sure doesn’t like it, but why should it? The investor class doesn’t understand this any better than you do. What they do understand is this new policy has upended assumptions and created enormous new uncertainties. We know that dish as those ingredients are always good for a big pullback.

Much of the confusion arises because we don’t know the underlying policy and likely this uncertainty is intentional. Trump likes keeping his counterparts, in this case our trading partners, guessing. If it means Americans are confused for a bit, Trump’s cool with that. Breaking eggs to make an omelette. It will pass and America will be great again afterward. Bon appetite.

If the core policy is to erect massive and mostly permanent tariff walls behind which American firms can hide, then we know how this will turn out: America, meet the dustbin of history.

If the core policy is to force our trading partners to deal with America fairly by reducing their trade barriers after which Trump will remove his tariffs, then this could turn out very well. Tariffs (and non-tariff barriers) in the U.S. and those of our trading partners would fall, reinvigorating the free trade that has energized prosperity for decades.

Which is it? Walls and doom or freedom and prosperity? Again, too early to tell.

Whatever else Trump does in his second term, these tariffs will define his presidency, akin in consequence to Ronald Reagan’s pro-growth tax cuts and Joe Biden’s inflation.

Trump in his second term clearly lives by the saying, “go bold or go home.” He’s got “bold” down pat. We will see over the next year or so whether he and the Republicans go home. Has he liberated Democrats from any fear of Republicans in the mid-terms or in 2028, or he’s liberated America from any fear of Democratic socialism and wokism returning in our lifetimes. The chips are all-in. Soon we will see the cards. Uncertainty, indeed.

JD Foster is the former chief economist at the Office of Management and Budget and former chief economist and senior vice president at the U.S. Chamber of Commerce. He now resides in relative freedom in the hills of Idaho.