As far as I'm aware, the only city that had a social credit trial was Suining. The article you linked refers to a flying blacklist due to legal issues. That's a far cry from any "social credit" system.
Your understanding of the current state of the social credit initiatives is severely lacking.
I suggest these articles. The source blog is a welcome change from the kind of lazy reporting on China typically seen in Western media (the editor was even featured in a Xinhua/CGTN segment), although the topics are still influenced by the lurid, pseudo-pornographic fetishizing of Chinese social issues by many Western China-watchers (hence the blog's recent blocking by the GFW).
In short, the various pilot social credit initiatives, both public and private, in China have already begun impacting citizens' liberties, even though the proposed national social credit system is nowhere close to being implemented. Whether these impacts of social credit systems constitute government "overreach," "abuses," or are "unfair" is up for debate. There are certainly many unofficial institutions and programs in the West, all based in some form on one's "credit" - whether or not in the traditional financial sense - that can ruin numerous aspects of an individual's life and future (and of course not just those related to your credit score). Perhaps it is better to have the government centralize and fulfill the requirements of many different institutions within society to obtain some idea of an individual's trustworthiness. Otherwise you get how it is in the West, where many gray-area practices exist for determining various forms of "credit" that can be difficult to comprehend or even be aware of.
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