That’s a take I see often, and it always overblows the direct personal threat while understating the more abstract societal one. A Western AI company might report you for plotting a murder or a mass attack, but that’s not the issue for most people. Mass observation of what society thinks deep down and manipulating it with that data is a problem for both, and maybe more so for external actors, since they don’t have even a remote reason to care about your well-being.

You’d maybe want to counter with something like 'But Google/Amazon/whoever just wants to sell me stuff!'. What makes you think that Chinese B2C would just pass on that opportunity?