Have you just used China as a good example for user privacy?
They keep trying to hammer through anti-encryption or logging or scanning laws.
Big picture, there isn't a government in the world that is better for their citizens than the EU, but it's more like least-worst.
For example, free speech is a thing that the EU or its national governments love to encroach on and I am quite envious of the fiery defense it gets in the US.
And in cases where Western companies don't want to invest in China due to their regulations, local alternatives seem to quickly pick up the slack and over time even become better than their Western counterparts (at least in certain aspects). Just look at all those Chat+Payment things over there.
It's hard to transplant the Chinese experience elsewhere. Not only due to Europe's current far greater dependence on American software and cloud providers, but also due to China's far larger pool of technical expertise, likely resulting from many decades of heavy emphasis on math and science education, together with far greater social and monetary rewards. I doubt that European politicians or their electorates have the patience for a big turnaround that may not start to pay off for several decades or even generations.
You either bend a foreign company to your will or you get to build a local champion.
And that fear grows when American companies pump money in the EU representatives. /s