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Personally I think it’s overblown, with way too much Sinophobia, similar to “the red scare” of the Cold War. It’s easier to control and manipulate your own population if they’re all afraid of “the big bad”.
However I’ll agree with pretty much all the risks, all the ways it can be abused. It’s just that local companies will “legally” abuse that data with far more direct impact to me, as do local political groups. A foreign government collecting that data may be able to manipulate crowds to meddle and someone needs to be concerned with that, but they have no reason to meddle specifically with me.
You should definitely be concerned about data collected about you and how it can be abused, but not just by China