New technologies enable governments to build extensive surveillance networks that gather diverse types of data on citizens’ social and economic activities. In China, such networks have been established for governance purposes, including efforts to curb dishonest defaulters—individuals who are financially able to repay their debts, either partially or in full, but choose not to. Despite the extensive surveillance networks and the penalties in place, the number of dishonest defaulters in China continued to grow, reaching 8.5 million by November 2024. This study explores the limitations of state surveillance and argues that fragmented authority weakens the state’s capacity to enforce compliance. As multiple agencies are involved in the surveillance networks, coordination becomes both necessary and challenging. Yet fragmented authority hampers information gathering and undermines the credibility of punishment. As a result, many dishonest defaulters choose to ignore court rulings and evade debt payment.
Cai et al. (Thu,) studied this question.
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