I think a bit of concern is healthy. Many governments may be relatively benign atm at least to those in the majority groups, but that isn’t necessarily going to be the case forever, and anyway once the data is collected there’s no theoretical limit to who in future can access them (malevolent future govs are just one potential risk IMO).
Not suggesting we should all panic, but I think in the long term we may find ourselves glad to have had this discussion at this point in history and hopefully to have put in place at least some protections that guard against some possible abuses.
I’m not talking about this particular example btw, but making a general comment.