You're being confused by nationalism into not seeing that you're making exactly the point I just did. The bad thing here is not that China knows where you are 24/7. It's that anybody does. Why is it bad for China to be able to spy on you but acceptable that Google can? The US government? How about we just STOP THE SPYING? Regardless of who is doing it?
You have a bacterial infection of the toe and of the finger. If i cut off your toe your foot problem is solved. Or...you can take antibiotics and not cut off anything.
Like it or not, China is the world's factory now. The west has decided it doesn't want to dirty it's hands making things anymore, so it is what it is. Make reasonable, standard daylight firmware a required feature of all these devices and you simultaneously solve about a thousand problems.