(Yicai Global) July 19 -- China's State Office has given more details about its plan to create a social credit system that ranks people and corporations according to their behavior and compliance with the rules.

The government will implement strict regulation and intensify punishments in the fields of food, drugs, manufacturing, elder care, and childcare, the General Office of the State Council said in a statement. Those who repeatedly break the rules may be banned from the sector, it added.  

The system, slated for 2020, logs residents' creditability scores. Those who smoke in non-smoking zones, drive badly, or post fake news online may receive lower ratings, which could lead them to have fewer opportunities in terms of applying for loans or visas as well as booking tickets to travel abroad. 

The program that uses Big Data will reduce regulatory costs as government agencies will target those entities that have put a dent in their credit reports, the statement added. 

In 2016, China's State Taxation Administration teamed with banks to start using a somewhat similar scheme to vet loan applicants by checking their track records of tax payments. The banks have been able to offer a volume of 1.8 million loans, worth CNY2.7 trillion (USD392 billion), to small and medium-sized firms with the system.

Editor: Emmi Laine