We use it that way and it works great.
If you're interested in trying DeepSeek V4 privately, you can try Tinfoil (tinfoil.sh) where all models are hosted in an attested secure hardware enclave, making the inference end-to-end private. Full disclosure: I'm one of the cofounders.
[1] https://cdn.openai.com/trust-and-transparency/openai-law-enf...
There are widespread reports about how foreign actors (not limited to China) have infiltrated critical networks across many industries in the US en masse and are simply waiting for the right time to exploit them. Frontier models are simply another attack vector (and much more easily exploitable when you think about it).
The fact is that there is potential for this with any cloud-hosted model, whether it is intentional by the actual company building the models or a malicious actor is able to exploit a vulnerability.
If I was working on something that the Chinese government considered of strategic importance, then I would certainly be worried about it. But I don't do that.
I'm much more worried about techbros in this country using their LLMs to extensively profile me and produce something vastly more dystopian in this country than the real or imagined social credit scores in China. The people trying to convince you that the Chinese government are the people you should be worried about (as an individual in the United States) are probably the people you really need to be worried about.
The tech bro threat model has always been pure jingoism and xenophobia. Ironically, the worst thing a Chinese company has done with my data is sell Tiktok to an American technofascist.