Xiaomi stance on Data Collection

I was reading some news about Xiaomi devices collecting user data and sending it to their servers in China.

This company was recently accused of recording very detailed user data like browsing history and phone usage pattern. They claimed that this data is being used to improve user server and to diagnose errors. This is standard data collection procedure.

I do know that almost every app collect data for diagnostic and I mostly choose to opt out of such option but sometimes many applications don't give you that choice.

Xiaomi is very right because everyone is doing it but why is this a norm now and why are not concerned with unnecessary data collection.

The problem here is not some Chineese company collecting data, its every tech giant is doing the same thing and no one wants to address that issue in that direction.