The west believes "Data is the new oil". The west can't compete with China or India in the amount of data their citizens can generate because they are the world's most populous country. China already has a huge head start because it has already been collecting and data-mining its citizen's data. Attempts to make stronger privacy laws and sovereign data laws in many western countries will also impede data collections. But state sharing of data - through 5 Eyes, 9 Eyes and 14 Eyes - along with BigTech data could give the west an edge. (The west already has partial access to indian data because it leaks through lax data privacy laws, ill-thought indian government policies and BigTech. But Chinese data is truly firewalled.)

So yes, you are right that we will see our democracies embrace more and more control over us citizens, limiting our rights, while our governments emulate China. This is unfortunately because the west believes that being a leader in technology is essential to retain its powers.