China Orders a Billion Smart Cards

Next year, China will begin replacing its 900 million paper identity cards with plastic electronic identity cards that will also serve as debit cards. In his article in the Wall Street Journal, Andrew Batson observes, "This profound transformation of how the government interacts with its citizens is proceeding nearly unnoticed by anyone outside a small circle of bureaucrats and industry executives. Each card contains an imbedded microchip containing the cardholder's personal identification number that can be read electronically and checked against the countrywide database by China's security authorities. Additional information will be encoded on the cards of residents of large cities. The card provides a link to account information, such as medical records, welfare benefits and employment status. Use of the card is expected to speed up transactions at stores and government offices. Understandably, privacy experts are concerned about the cards, since they would "track" many of the cardholders' daily activities.