My point is that reddit is set up to be run as an authoritarian system, by people who obviously believe in authoritarianism. Users who like reddit but are afraid of a company from an authoritarian state investing sounds silly to me. Similarly silly: when Google fans get scared about video cameras because it feels like surveillance.
My gut feeling is that it's a reaction to propaganda (for lack of a better word; I'm not suggesting that there's a concerted effort). China has been associated with a surveillance state, and mentioning China or large chinese companies will send people into a frenzy because they don't want a police state. That their favorite website runs on the same ideology, that they are constantly under surveillance by corporations and their own government: ignored.
As for "laws can be changed": that's why I'm a fan of only implementing things that you feel comfortable giving control over to your worst political enemy.