Rather, the claim of toxicity stems from the perceived tendency for Chinese investors to be difficult LPs and steal intellectual property both pre-deal during diligence and post-deal once they are in the capital structure. There's an additional perception of 'toxicity' in terms of the way that having Chinese investors might limit a company's ability to procure US Gov contracts, which is getting tighter under this administration, as described in the article.
The comparison to sending your kid to an Ivy League school makes no sense to me whatsoever, seems like a total non-sequitur.
IP theft/strongarming and sales opportunities are the more likely concerns from the entrepreneur/business side.
Some people are taking the moral stance, but TFA lines up with parent comment well