I invite you to read this: https://foreignpolicy.com/2021/09/15/china-social-credit-sys...
I quote: "Contrary to common belief, the cities mainly target companies, not individuals. Nonetheless, legal representatives of a violating company are also included in the blacklists to prevent reoffending elsewhere or under a different company. Nationally, about 75 percent of entities targeted by the system end up on blacklists because of court orders they have ignored—the so-called judgment defaulters. The remaining companies are typically collared for severe marketplace violations—for instance, for food safety infringements, environmental damage, or wage arrears. But much of these cities’ day-to-day use of the SCS is banal thanks to the system’s fragmentation and inflation of results."
The gist of it is that it was a grading system for businesses, to distinguish the bad payers, often bankrupts people restarting business over and over. This is ofc not great because we would need a "start over" mindset like in the US, but stop reading buzzfeed-like news about this thing, it's a bit cringe.
We are oppressed maybe, but not THAT good at it. Most of the censorship in China is self inflicted and networked, from the bottom, think "shhh don't say that you'll be in trouble" or "I prefer not to answer that question, wink wink". No need for complicated expensive systems diverting taxpayer money away from the pockets of our dear leaders, when a simple 2-hour interview of one person at the police station can silence an entire social graph of hundreds of people for months :)