China has long been a "face" orientated society. This is traditional to varying extents throughout the world, with (parts of!) the US probably being at the other end in terms of extreme individualism.

Once you keep dossiers on people, it's natural to want better dossiers. This is just an extension and a centralization of technology that in the was is used to mould people's consumerist behaviour by rating their purchasing habits and credit. In the US there are reports of people being unable to access jobs if they have poor credit or healthcare if they have poor "lifestyles".

Dehumanisation is very easy: you reduce people to statistics, and then give those tasked with maintaining the system the objective of increasing certain statistics. The overall question of "is this just?" is hard to see and hard to discuss.