China's social credit system has been the topic of many debates and controversies in the public and academic communities. Considering the nature of the Chinese political system, there is concern about the extent to which the government will, by this new measure, interfere with the private lives of citizens. China is trying to portray itself as a strong and united country in foreign policy, while at the same time there is a constant fear of internal unrest. The social credit system is a complex system where China seeks to address and resolve a lot of serious problems. It wants to monitor and control society with it, restore confidence in the power, retain or increase its economic growth, and strengthen internal security. This paper analyzes the key elements of social credit, its philosophical foundations, and its implications for the world. This system is already in use in some cities and the authorities aim is to build a complete infrastructure for the social credit system by 2020. The Chinese social credit system is a 21st-century social governance system. It has been present in China from the very beginning, and this only continues this tradition in modern attire.