China's Giant New Gamble With Digital IDs

China will launch digital IDs for internet use on July 15th, transferring online verification from private companies to government control. Users obtain digital IDs by submitting personal information including facial scans to police via an app. A pilot program launched one year ago enrolled 6 million people. The system currently remains voluntary, though officials and state media are pushing citizens to register for "information security." Companies will see only anonymized character strings when users log in, while police retain exclusive access to personal details. The program replaces China's existing system requiring citizens to register with companies using real names before posting comments, gaming, or making purchases. Police say they punished 47,000 people last year for spreading "rumours" online. The digital ID serves a broader government strategy to centralize data control. State planners classify data as a production factor alongside labor and capital, aiming to extract information from private companies for trading through government-operated data exchanges.

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