You seem to assume that the risk begins and ends with government persecution/prosecution.

I'm not the gp, but for me, there are several bigger concerns:

First, the possibility that access could be leveraged for intelligence gathering or industrial espionage. The goal might be geopolitics, but I still don't want my data to be fodder nor do I want to explain to my employer that I'm responsible for their breach.

Second, the possibility of becoming collateral damage during an escalation of hostilities between my country and China. If I've grown dependent a device, I face significant disruption if they block cloud services or even outright remotely brick it. The war in Ukraine demonstrated this isn't limited to the other country's exports, but they're still at the greatest risk.

So yeah, a company snitching on me to big brother I live under is just one threat I have to consider when giving access to all my data.