Earlier quoted context omitted.
> don't even care if china is attempting to surveil me Flip it around. You're in China. Would you want the CIA to have access to your life? Of course not, unless you're an idiot. Every intelligence agency has near-limitless utility for disposable stooges.
There is no universe in which foreign intel trying to blackmail you over some bit of info is worse than the local agencies doing the same.
You're comparing conditional probabilities without considering the priors. Given you're being coerced, it's worse to have that done by power close than power afar.
The downside for the FBI blackmailing an American is significant. Of course it happens and has happened. But it's weighed. The downside for the CIA doing pretty much fuckall is highly limited. This results in the common asymmetry in non-autocratic countries between domestic and foreign surveillance budgets and, subsequently, targets. (If it came out that the CIA had been leveraging the porn habits of Chinese citizens to coerce them into spying for it, I'm not sure there would be any backlash in Washington. That's literally their job.)
That example, by the way, hints at the lack of mutual exclusivity in your example. Every one of those disposable agents would subsequently be punished by Beijing. Same as if you got played by Russia or China (or Pyongyang or a non-state criminal outfit). The blackmail only works because you're rationally afraid of your local agencies--the CIA has limited means by which to directly coerce Chinese citizens in China.