On the flip side, with the rise of persistent social networks and the long memory of the internet, people may be thinking about their overall ethical image "globally" in the same manner, and it being hard to wrap one's head around.
Of course with government spying, China probably isn't the only one with a "good citizen index" calculated based on the monitoring. All it takes is for once three letter security agency to want to assign "danger" scores to citizens, as well as "importance".
Your are also correct that if capitalism and its inherent sociopathic reward system promulgating to some form of reproductive reinforcement or selection, then in the long term bad things will happen.