It is best to never have any Chinese company store your data. They are by law (and under severe penalties) required to make all data in their possession available to government officials at any time that it is requested. Dictatorships are like that.

Chinese firms are generally required under threat of arrest to store and/or transmit all data on users. A single Chinese firm failing to delete data would have little or no negative impact within China given that they’re probably already secretly required to do exactly this. Do you mean US customer impact?