The system assigns Chinese citizens a social credit score based on their social, political, and economic behavior. A bad score affects a Chinese citizen’s ability to travel via train or plane and can even stop a person from getting a good job or staying at a nice hotel. The system works by using big data, AI, and mass surveillance to monitor citizens in whatever they do. And now, the social credit system is extending outside of China’s borders.

A report from the Australian Strategic Policy Institute says China’s social credit system will begin expanding past China’s borders to monitor Chinese citizens wherever they are globally. The system will also start applying to international companies that do business in China. As a result, the social credit system is not just shaping the behaviors of Chinese citizens beyond their border but international companies as well. If an international business gets a low social credit score, it could lead to fines for the company, higher interest rates for loans, or even the blacklisting of its products.

The threat of a negative social credit ranking recently pressured international airlines based in the U.S. and Australia to remove Taiwan on their international websites. It is feared that as China continues to roll out its social credit rating to businesses, those companies will feel they have no choice but to adhere to the Chinese Communist Party’s ideologies and worldview if they want to keep operating in the country.