Agreed. I get that both might have the same level of access to my data but if I was staying in USA, I would be much more okay with my data getting in the hands of an organization which is within the jurisdiction of the democratic country I live in. Also, given the global political scenario, China is considered a competitor/enemy due to opposite ideologies (not my personal opinion) so the choice is obvious. However, whether USA is/will stay a democracy for long is a longer debate.

Some would say being closer to the powerful thing is exactly the risk. i.e. better to be far away from those you give info to.