That part is still valid. And really we don't actually know what evidence the DA has or if the scope of the arrest warrant matches the theory. All they've said is that some data was stored in China.
To be clear, "having data stored in China" is exactly equivalent to "had given the Chinese government backdoor access to personal data" - and that's not some "conspiracy", that's the stated law of China.
Furthermore, the reason that's so important is because "having some data stored in China", if true, means that this quote from the article, "Konnech said none of the accusations were true. It said that all the data for its American customers were stored on servers in the United States and that it had no ties to the Chinese government." would be a complete lie.
I wonder how many other instances of this there are in their other reporting, where reasonable accusations or suspicions are "debunked" simply by the accused stating "nu-uh".