This sounds like a debate between possible and probable. Sure, US has "surveillance capitalism" as described by Prof. Shoshanna Zuboff (3 min summary, longer if you look in the YT sidebar), but not like China:you're describing the US government lol... remember "boundless informant" and edward snowden? You're describing it to a tee.
China's not gonna let a us-affiliated company funnel domestic chinese users' data out of the country to firaxis HQ in maryland or 2k in cali -- anyway this is not what that clause is referring to, putting it in writing makes it not secret at all, they're just listing the manner in which you can lose your account, thats the only purpose of the code of conduct.
Tencent is indeed subject to chinese gov't oversight, just like firaxis/2k is by US gov't. Neither gov't needs a game company's code of conduct to enable their spying activities lol; this conspiracy theory stuff doesn't make sense. Besides nobody's getting any useful, compromising data out of these mobile game apps. The game's purpose is to drain your wallet, and this clause makes it nice and legal to terminate any account on any basis, even if the user's sunk thousands into it, no matter if its for something that happened in or out of game.
The basic issue here is: "I'm not doing anything wrong, so they won't monitor me." Wrong. Tencent don't know who is disobeying their game rules unless they check *everyone*. And while doing that, they monitor content ("hate speech" bogeyman) in addition to checking for cheating them out of in-game purchases (which many "free" games have if you want higher level play).
Who says they have to share data with their US partner? What's the contract say? Evidence they do/don't work around it?
FYI, the US also has a "social credit" system, but in privatized form via insurance companies -- see the link in my article:

A Primer on Digital Thinking Part 3: Rise of the Robots? - Front Porch Republic
Using money to measure a person’s worth is a product of an early version of the digital mindset that attempts to quantify all aspects of life.
