China's Reporting Culture: Risks for Foreigners and Businesses

22 George Street

This episode of 22 George Street discuss the unique and pervasive culture of reporting in China and its implications for foreign businesses and society. Beginning with the challenges faced by international companies operating in China—ranging from controversies over Xinjiang cotton to disputes about maps including the South China Sea—the podcast highlights how the ever-present threat of public reporting, or "举报" (reporting), creates significant operational risks. The discussion explores the deep roots of China's reporting culture, from its origins in socialist surveillance systems like East Germany's Stasi network to its institutionalization during Mao-era campaigns such as the Anti-Rightist Movement and the Cultural Revolution. Unlike in other socialist states, where reporting was primarily driven by political fear, in China, it has merged with societal tendencies like jealousy and the quest for moral superiority, creating a highly destructive feedback loop. The podcast further examines how this reporting culture has become an integral part of China's governance strategy. By encouraging citizens to report on one another, the state maintains tight social control while deflecting attention from systemic issues. Foreign companies operating in China must navigate this complex web, where even inadvertent missteps can lead to public outcry, regulatory scrutiny, and reputational damage. Ultimately, the podcast underscores how China's reporting culture represents both a reflection of deep-seated societal dynamics and a powerful tool for authoritarian governance, offering insights into why this phenomenon continues to shape China's modern landscape.