Even the people pushing this law acknowledge that the threat is purely theoretical, no one is advancing any serious argument that data has been or will be shared or leaked or anything of the sort. It's just xenophobia, if they wanted to protect American citizens' data they would do something about the way they allow tech companies to just take your data and turn around and sell it to whoever wants it.

Bonus points because US government officials can punt a great bargain basement blowout sale to former US officials by forcing the sale of a company using said xenophobia.