I think that line says it all.
And before you say, "this will only apply to bad people!" check out the next paragraph:
> The project is a response to the party’s biggest problems: the collapse of confidence in public institutions, and the need to keep track of the changing views and interests of China’s population (without letting them vote). It seeks to collect information on the honesty of ordinary citizens, public officials and companies alike.
In the US, ex-convicts have major problems starting over and getting on their feet but this is a whole other level. This is punishing/excluding people solely based on their opinion, not based on actions or crimes committed.
No wait, disagreeing is the crime.