So the tech is there. And then it comes to trust. Will they not send data when they sell cars outside China?
Cooperating with this evil is like driving into a brick wall to demonstrate how much freedom you have.
Every American has been fed so much propaganda that they see this as good vs evil fight.
Meanwhile, when I visited China, people there only saw this as a political fight. A theater for economical gains. That's it.
But in order to sell the American public on their actions, politicians have to demonize their foreign opponents in every way possible - often portraying them as "evil".
Mainland China is still cut off from knowing a big chunk of human thought. Realism - the school of thought you're describing - is the Marxist mode in a place you can't vocally disagree without serious consequences. No wonder it's what you heard.
Huawei's net gear is alread being replaced with brands like Nokia and Ericsson. And car tech is becoming much more advanced so that it can also be used to spy on people.