The problem is that certain organizations can harvest recordings of illegal or semi-legal activities (think a teenager sharing a video with her crush, etc) and

The problem is that certain organizations can harvest recordings of illegal or semi-legal activities (think a teenager sharing a video with her crush, etc) and then five-ten years down the line that content can be used as a blackmail to do industrial espionage, sabotage, etc. China is an autocracy. Even if it is not doing it already it can easily start doing it in the near future. One can look at the example of another neighboring autocracy and see where the trajectory could lead.