<preference for="Magento\Framework\Api\Search\ReportingInterface"
            type="Magento\Framework\View\Element\UiComponent\DataProvider\Reporting"></preference>

This is a preference configuration.

This configuration is for the base area. Base area configurations will apply to all the sub-applications.

This preference configuration tells the Object Manager when a user wants a Magento\Framework\Api\Search\ReportingInterface object that it should return a Magento\Framework\View\Element\UiComponent\DataProvider\Reporting object.