There are two considerations.
For the American government and corporations, Chinese espionage is an obvious and real threat. NVidia doesn’t want China to steal their chip designs and the Pentagon doesn’t want China to steal military info.
For American private citizens, it isn’t really a threat. It’s actually preferable in a way, because you know they won’t disclose whatever they learn to the American government. You might even consider buying a fully “designed and made in China” device, which the NSA might not have a backdoor to.
This only makes it more concerning to the American government, because they lose control over their citizens.
The continuing American embargo on Cuba after the Cold War has always been toddler tantrum level of pettiness.
I thought Obama had finally closed that chapter, but I was wrong.