China’s new social scoring system is impacting how foreign companies operate within China, as well as outside of its borders.

Chinese scholars in the west have hypothesized that coming into line with the preferences of the Communist Party of China could ultimately impact the sovereignty of other nations.

One known effect of the system is the party pressuring airlines flying to Taiwan, Hong Kong, or Macau to refer them in the party’s preferred nomenclature, and avoid referring to them as separate countries.

As of 1 January 2018, all companies with a Chinese business licence, a necessity for operating in the country, were brought into the social credit system.