Instead, this is the absolute worst of American-style private contractor bullshit (private prisons, etc.), rolled up with the absolute worst of Chinese-style opacity and oppressiveness.
Who on earth would think that a hidden (known to few) objective function for being a good citizen would help create a better society? Why would anyone think that the private sector in China is even remotely transparent or credible enough to hold this kind of responsibility? Who on earth believes that China has the ability to administer this system with even a modicum of fairness (that might not be a shared value, to be fair)?
Nothing is black and white on this earth, and I genuinely hope this can work, but I think it is a transparently awful idea and I am disappointed in any group of people who would yoke themselves to it.
[edit] It's the worst of neither American private contractor bullshit or Chinese oppressiveness and opacity, that's a deep dark well that it would be pretty tough to scrape the bottom of. It's a crude fusion of both, and it's going to hurt a lot of people in ways little and big, but it isn't the worst of either.