While 7% isn't even close to the majority, it's a little higher percentage of democidal, genocidal, dictatorial co-conspirators, or would be co-conspirators than I would have liked. Mind you, this is only considering CCP members.
You probably think I'm evoking McCarthyism, no, I'm simply evoking vigilance. In a mature and democratic society like the US, there is a spirit to give everyone a fair chance to succeed, this spirit is embedded into laws that ensure equal opportunities and strengthen civil rights, and I believe this is admirable values that are worth protecting. On the other hand, it is exactly for the protection of these rights and freedoms, mechanism needs to be put in place to prevent their destruction, and they do exist already in the forms of the Constitution, FARA and the various anti-sedition/treason/espionage acts in the US.
In a controlocratic police state like the PRC, where all the sticks and carrots steer people away from basic human decency and morality[1] their entire lives, there's no reason to believe a majority of them will suddenly become decent and moral once they leave the border, especially not if many of their expat friends still have ties with the CCP's foreign branches. They are either too scared to do the right thing or worse, still don't know what the right thing is. The good thing is, democratic institutions have all kinds of defense mechanism against behavior against the host's national interests and freedoms, I'm simply suggesting you use them. In the UK, the Tube broadcasts "see it, say it, sort it" every 10 minutes or so to alert passengers to report any suspicious activity, possibly as a defense against terrorism. I believe the US and elsewhere should also practice this when it comes to CCP infiltration operations.
As to containment and liberation (the political and foreign affairs circles use the term liberalization) strategy, this Wikipedia article[2] isn't a very good start but it's a start. If you google the term, you'll dig up at least 30 years of articles and papers from publications like Foreign Affairs and the DoD's archives. Also, see TPP and neo-liberalism.
The recent anti-Chinese drumbeat has been a long time coming. Anybody who's been paying attention on the ground in Hong Kong since the handover knows the mainlander are only there to encroach and erode "western" ideals and institutions to advance the CCP's interests of staying in power forever. Hong Kong has suffered quite a number of substantial blows in recent years, this extradition bill on the table is the last straw, I really hope other nations don't have to bow to such regime anywhere in their territories.
[1]: https://en.wikipedia.org/wiki/Death_of_Wang_Yue [2]: https://en.wikipedia.org/wiki/China_containment_policy
Insisting that all Chinese immigrants (or is it only nationals now?) are likely CCP agents does seem to fit the definition of paranoia. Acting fully on paranoia of this magnitude will just bring about more extreme thoughts--and not to mention expressions of racism given the ambiguity between what being Chinese means in the west. What exactly is the containment and liberation strategy? A repeat of the US's Chinese Exclusion Act, internment camps, and a return to the good ol' "Better dead than red" days?
Every working-age Chinese national I've gotten to know in the US would jump at the chance to get a green card, get citizenship, and get their aging parents over. There's a separate debate to be had there, but my anecdotal experience has shown that most immigrants are motivated by hard work and seeking a better life for them and their family, and not by surreptitious and opportunistic exploitation of their new home.
On soft power for those few that try to project it, they don't seem to be doing well as your links readily show controversies and suspicion. If anything we should be more concerned about soft power projection into Africa and the cheap UN votes it buys.