Thing is these models can also be a propaganda machine whether you run it locally or not. This is true no matter the origins. Chinese LLMs will never shit-talk CCP, and it will always give a rosy depiction of the Chinese government. It's perfectly understandable if companies don't want things like that. US/EU models have these problems too, but at least there are some ways to fight that: with a lawsuit or a megaphone on social networks. With Chinese models there is nothing you can do.

You are sending all your prompts code and files there. So ofcourse its an issue