That seems like more of a risk with products manufactured by domestic companies.

Security/privacy from both would be a win, but it's not unreasonable for folks to be skeptical of a Chinese manufactured CPU for much the same reasons you're expressing skepticism of USA made CPUs. There's no doubt china would love to have the same sort of arrangements that the US does with US chip makers. Though I would also say this would have to be a big bet on RiscV by the CCP, RISC isn't exactly ubiquitous or relevant in the same way amd or Intel are. That could change, but it'd be a bet on the future relevance of RISC