You can't have it both ways, either we have a forgetful society ... or you let things be remembered forever and applied to your "reputation".
The so-called "right to be forgotten" has exactly zero relevance here. For one, it never prevented anyone from assembling a database of social interactions with "scores" based on individual behavior. It only prohibited the details of that behavior from being searchable by the general public. This new system China is implementing does not need to be public or searchable to be effective and would be fully compatible with the nonsensical "right to be forgotten" laws instituted in the EU. Moreover, the ability to search historical records for once-public information about an individual's past does not in any way imply the degree of official monitoring and collection of private data about individuals that China's plan calls for, much less mandate that this information be used to control access to goods and services in service to the rulers' political and social agenda.
When a person with extensive debt and a history of missing payments is denied a loan based on their credit score, that is simply common sense. If more information allows that risk to be assessed more precisely, so much the better—so long as the information is made available voluntarily, and deliberately hiding relevant data to obtain credit which would not have been extended had the lender known about the risk is tantamount to fraud (i.e. theft). On the other hand, when an otherwise responsible, low-risk individual is denied a loan merely because an intrusive government deems them "potentially subversive" or "not a team player" we have a serious problem, especially when the government exercises significant direct influence over the economy.
TL;DR: The problem is not the absence of "forgetfulness" or the existence of a "reputation score", it's the influence of the government over the economy and the application of political force guided by that information. Without that information the government's meddling would be perhaps a bit less efficient, but no less wrong.