Yes.
Why is that a shock to so many people? This isn't some sort of a moral debate, this is a conccern of an information war and quite possibly an actual war soon enough.
The concern is not that the CCP will harm american users directly but will influence them at scale and use that information to conduct hostile espionage operations, extortions and other subterfuge which will only get worse with the already declared goal of Taiwan unification in Xi's new term and a potential related military conflict.
If Mark zuckerberg became a national securitu risk you can lock him up and tell him how naughty he has been. Can't do that with Xi.