Answer:
China has established a Social Credit System. This is a system that gauges people's and companies reputation or social credit, based on a numerical score.
The Social Credit System is related to China's mass survelliance programs.
International observers around the world are worried about the nature of this Social Credit System. It could turn into a new caste system that marginalizes whole sectors of the Chinese population due to low social credit.
The difference is that Referendum is a decision for the general assembly to put a bill on the ballot. Initiative is when citizens get signatures and make the decision to put it on the ballot to be voted on.