ABSTRACT
For over 40 years since the introduction of the reform and opening-up policy, China's economy has maintained a healthy growth momentum. China has gradually realised her grand vision of a national renaissance in terms of overall national strength. To understand the credit issue, one must first place it against the grand background of China's social change. From the founding of the People's Republic of China to the implementation of the reform and opening-up policy, China transformed from a highly centralised economic system to a market economic system featuring competition at many levels. Regarding the social credit system, some scholars have definitively pointed out that the absence of social credit harms the economy, increases transaction costs between individuals and enterprises, reduces benefits, wastes social resources, and hampers the healthy growth of private investment and the private sector.
