There is also paranoia that the Chinese government may compel their tech companies to play dirty tricks on their users. Yet without a trace of irony the critics have nothing to say about this not-so-secret practice for US based technology companies.
Clearly the thing we should want is a healthy, international AI ecosystem characterized both by cooperation and by competition, so that we are free to choose between models developed under different conditions, for compliance with different laws, subject to different cultures and biases, pressured by different interests, etc.
To the extent that there's a solution, the solution is choice!