China warns borrowers to pay up or be shamed

2017年12月13日

Intermediate

Pre-reading questions:

  1. What do you think about lending money to your friends or family members? Please explain your answer.
  2. What do you think about borrowing money from the bank? Please explain your answer.

Vocabulary:

  1. platform – an opportunity to make your ideas or beliefs known publicly

    2. Facebook is a social media platform widely used across the world.

  2. screen – to investigate an individual to make sure that he/she is unlikely to cause problems

    3. The Human Resource Department screens all applicants thoroughly.

  3. credibility – the quality of being believed or trusted

    4. The jury had doubts about the credibility of some of the witnesses.

  4. debtor – a person, organization, or country that owes money

    5. The debtor only owes a few hundred dollars on his credit card.

  5. default – a failure to pay financial debts

    6. The company defaulted on a $133 million loan.

The Chinese Government officials plan to expose irresponsible borrowers on a provincial level. Local news organizations along with the courts and the officials are going to maintain the list of borrowers. Different platforms will be used to urge the borrowers to pay up. This will help the banks to screen consumers who are identified as credit risks.

Credit ratings are essential when applying for and obtaining loans. China wishes to establish a social credit system that ensures an individual’s credibility. It also tracks the debtor’s personal behavior. This system aims to encourage debtors to be responsible in paying their debts and to avoid incurring more defaults.

Comprehension Questions:

  1. Who will maintain the list of debtors?
  2. How will the bank identify credit risk consumers?
  3. What is a social credit system?
  4. What does the social credit system track?
  5. What will happen to irresponsible debtors?

Express Your Opinion:

  1. Do you think China’s way of urging their debtors to pay would be effective? Please explain your answer.
  2. If you were a Chinese Government official, how would you encourage debtors to pay accordingly?
  3. What are the common rules for lending and borrowing money in your country?
  4. Which method of payment do you prefer, cash or credit card? Please explain your answer.
  5. What would you do if a friend or a relative was publicly humiliated because of his debt?