Part of the plan is to make it easier for China to spy on its citizens and local companies. Because China will much easier integrate it's local eavesdropping plans into the technology, this will give an opportunity for other countries, using local spies, to piggyback on the spying technology the China uses on his own citizens and companies.
Absolutely. If the situation were reversed we would do the exact same thing and we would celebrate it as a wonderful idea (although it would be cast as 'stimulating the national economy', since citizens here can't participate in international policy).
