The reasons are myriad. It makes it harder for other governments to control narratives in their own countries. It undermines efforts of governments to develop their own capacity; the US gives it away for free but those countries are not the customer and it does not serve them per se. It sets a much higher bar for domestic implementation than they have the capacity to implement. There is a sense the US exploits this data for their own ends. It doesn’t just irritate China, it irritates everyone.
Making the issue more political, the US edits and censors the data it publishes for its own purposes. This isn’t a secret but it taints the perception of US neutrality when making this data available.
The geopolitics and realpolitik of international sensing data is not clean.