There's absolutely nothing nefarious about remembering previous interactions you had with someone. In fact it's impossible not to do so.

The problem with China is how it tears down the natural separation between different spheres of your life, how all-encompassing their panopticum can become because it has access to any data source it desires, and that the issues it engages with all seem to be of the this-doesn't-concern-you-and-nobody-is-actually-harmed variety, such as peoples' porn consumption or eating habits.