"Social death" is a common thing on Chinese social media apparently, shame-based virtue
One big disconnect the US has with China is that it's a putatively communist state running a hypercapitalist economy. So they frequently do capitalist stuff with that scary word "socialism" attached to it. Like introduce a fleet of pilot credit systems and calling it social credit.
Mix this phenomenon with US high school civics class and a few propagandists and you get the American view of "social credit score".
The whole reason you have entrepreneurs in the US is because people DON'T judge for you failing. You can always start again.