Nah, it was a real, short-lived series of experiments each of which was implemented as a series of penalized actions typically exclusive to a city or province, none of which lasted more than two years or prevented citizens from accessing public utilities. Enforcement relied on usually elderly volunteers reporting violations. This was notoriously unreliable and caused more disputes than it resolved, so the central government legally outlawed the systems they recommended be implemented and trialed by provincial or city governments.

Still, many Chinese people clamour for this to be returned and expanded upon. Mostly people annoyed with litering, theft, scams, and other behaviors that are already illegal, but frequently violated.

What remains today is basically a credit score for business owners and executives that also accounts for causing public harm. More or less it is a cumulative punishment for fraud, forging tax or safety data, violating environmental or labor regulations, and giving predatory interest rates or loan conditions. Think of it as a supplemental penalty for losing civil suits or violating the law where the punishment is typically a fine. Makes it so businesses cannot eat the fine because their profit exceeds the legal penalty.

What westerners believe is a complete fabrication, one that is frequently mocked on Chinese social media.