Come now. The purposes for which the data is used is relevant. I am much more concerned with my internal corporate IP being actively used against me than passively used to train the model. I would also note you and sign agreements that prohibit the collection of data for use as well, which is also one of the key selling points of bedrock. In the west you can actually enforce such an agreement in court and win.
I wouldn’t lump this into a west vs east thing as well. This is particularly PRC. I feel comfortable doing business in Japan, Korea, Singapore, Thailand, Malaysia, etc. But it requires some particularly strong willfulness to pretend the PRC isn’t actively and structurally built around economic espionage, and funneling IP through PRC for short term economic gain has been one of the primary factors in their growth over the last 30 years. This just scales it faster.
I wouldn’t expect the USG won’t compel AI companies in the US to disclose and retain data as well - however it’s not a simple thing, the companies are hostile to it themselves, courts are often unsympathetic to the government, and the “machine” for converting it into actionable economic advantage is non existent - and there’s a very significant human component in that all links in the chain are culturally uncomfortable with such things. While it happens and it’s possible it’s very difficult, fraught, and does not scale. The PRC is the opposite - the courts, government, and business culture are all aligned in the goals and processes.