For China, the problem with Facebook isn't control or censorship, but rather providing protectionism for their own brands, i.e. WeChat.
[0] Where "partner" means - setup a local JP we control and give us your IP and you will own a "share" (but good luck with the local courts when things go wrong!)
I’m quite a strong advocate for free trade. But if a country has locked you out of their market, I don’t think you should give them easy access to yours.
As for US, FISA courts, NSLs etc were a worry when AMS-IX wanted to start a subsidiary in NY, USA.
The argument "what about ..." or "they are worse" isn't strong.
Regarding the US intelligence apparatus. It’s a threat to the liberty of US citizens. But it’s not a threat to US national security.
https://blog.btrax.com/6-businesses-with-success-in-china-an...
I don't know what the latest is [0], but 5 years back following these laws meant you'd have to be a standard domestic company which a non-citizen cannot incorporate or own.
[0] China has a tendency of introducing new mechanisms giving impression of potential for more access that never pan out. Back in the day AWS was promised unprecedented terms in a Shanghai free trade zone. Was supposed to have access to unfiltered connections. None of that has ever happened and "AWS China" is now just a cloud service operated by Chinese companies under the AWS brand.
Even YC fell for this with their China operation now being 100% China-run leeching off their brand. Though I don't know if anything was being promised to them.