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The social credit initiative calls for the establishments of unified record system for individuals, businesses and the government to be tracked and evaluated for trustworthiness. By , some restrictions had been placed on citizens which state-owned media described as the first step toward creating a nationwide social credit system.
The social credit system traces its origin from both policing and work management practices,  but the concept itself can trace as far back as the Warring States period to Shang Yang ‘s Legalist meritocratic “rank” system practised by the Qin state. During the rule of Mao , the work unit was the main intermediate between the individual and the Communist Party of China.
The unit concept, as such, is derived from Hegelian and especially behaviorist social science. Other related examples include the neighborhood unit in developments, study of living creatures at the level of a defined ecological unit , the entity concept from accounting, the strategic business unit in commerce, the unit concept of church fellowship in the Wisconsin Evangelical Lutheran Synod , the use of individual behavior as the unit of study in radical behaviorism , and the meme in anthropology.
The Social Credit System also originated from grid-style social management , a policing strategy first implemented in select locations from and during the rule of paramount leader Jiang Zemin in specific locations across mainland China. In its first phase, grid-style policing was a system for more effective communication between public security bureaus. Within a few years, the grid system was adapted for use in distributing social services.
Grid management provided the authorities not only with greater situational awareness on the group level, but also enhanced the tracking and monitoring of individuals. People often expect to be cheated or to get in trouble even if they are innocent. He believes that it is due to the Cultural Revolution , where friends and family members were deliberately pitted against each other and millions of Chinese were killed.
The stated purpose of the social credit system is to help Chinese people trust each other again.