Hi Gerry,
there is good and bad news. The good news is, it is working, when configured correctly. The bad news, tracing configuration errors concerning fonts is not always easy and parts of the configuration changes requires ReportServer Enterprise Edition (see below).
If I am not mistaken, then there are two problems with your setup. The datasource folder and alias problem seem to indicate that the database you are using does not store data in UTF-8. I’ve tested both with the test string “你好,世界” (which google translate tells me should mean “hello world”) and it worked in both cases (see screenshot)

What database are you ReportServer on? To ensure the data is stored correctly in the database, you can use the following query
SELECT * FROM RS_DATASOURCE_FOLDER
My guess is that the database does not store UTF-8 values and hence you already have the ??? in the database.
As to the second problem, that is, the PDF export of a Dynamic List. Here we need to make ReportServer aware of a font that supports Chinese characters. The default font used by ReportServer is DejaVu Sans which does not support Chinese characters. In order to change the font, you need to adapt two configuration files in ReportServer’s internal file server.
/fileserver/etc/exportfilemd/pdfexport.cf: To make ReportServer aware of a font that supports Chinese characters
/fileserver/etc/dynamiclists/pdfexport.cf: To use the font when exporting Dynamic Lists to PDF (this change requires ReportServer Enterprise Edition)
For testing I used Google’s Noto Fonts. The first configuration file could look as follows:
<?xml version="1.0" encoding="UTF-8"?>
<configuration>
<pdf>
<fontDirectories registerDefaultDirectories="false">
<dir></dir>
</fontDirectories>
<fonts>
<font>
<path>PATH_TO_FONT/NotoSansCJKtc-Regular.otf</path>
</font>
</fonts>
</pdf>
</configuration>
This makes ReportServer aware of the NotoSansCJK Regular font. Now we need to adapt the second config file for ReportServer to use the font. Behind the scenes when generating PDF for a Dynamic List we are transforming HTML into PDF, that is, we can use standard CSS in order to select the font. All that needs changing is the tag in the config file.
<style><![CDATA[
@page {
size: A4 landscape;
@top-left {
content: "${report.name}";
font-family: Noto Sans CJK TC Regular, Sans-Serif;
font-size: 8pt;
}
@top-right {
content: "${now}";
font-family: Noto Sans CJK TC Regular, Sans-Serif;
font-size: 8pt;
}
@bottom-right {
content: "${page} " counter(page) " ${of} " counter(pages);
font-family: Noto Sans CJK TC Regular, Sans-Serif;
font-size: 8pt;
}
}
* {
font-family: Noto Sans CJK TC Regular, Sans-Serif;
}
]]>
</style>
Here I’ve replaced the DejaVu Font with the Noto Sans CJK TC Regular and added the section
* {
font-family: Noto Sans CJK TC Regular, Sans-Serif;
}
telling the converter to use the font throughout the entire Document.
Once you’ve implemented the changes in the config files, be sure to run the config reload command on the terminal.
For testing, I’ve create a simple dynamic list and added the “你好,世界” as alias of a single column. Following is a screenshot from the PDF export.

I hope this helps.
Cheers,
Arno