Qihoo is just a typical tech company with a "security" focus. It having a VPN is like Norton having a VPN - like Norton VPN.
Using a shell company is likely just a way to avoid sanctions.
A Chinese app talking to Chinese servers is no more alarming than a Swedish app talking to Swedish servers or an American app talking to American servers. Imagine writing a breathless "report" about how searching the App Store phones home to the United States. You know, to search for and download apps.
So basically the Tech Transparency Project is just doing some nationalist orientalism.
From their website: "TTP is a research initiative of Campaign for Accountability (CfA), a 501(c)(3) nonpartisan, nonprofit watchdog organization that uses research, litigation, and aggressive communications to expose misconduct and malfeasance in public life."
Their director: "Katie Paul, TTP’s Director, specializes in tracking criminal activity on online platforms such as Facebook. She also serves as co-director of the Antiquities Trafficking and Heritage Anthropology Research (ATHAR) Project and a founding member of the Alliance to Counter Crime Online (ACCO)."
They are somewhat opaque about their funding. They claim to not accept corporate funding but every funder they list is just a middleman NGO for corporate/billionaire funding.
So, a typical NGO run by a cop.
Tech companies are generally terrible and tied to financialized nonsense, but there is nothing out of the ordinary here. The outrage is premised entirely on xenophobia.
Get involved in organizing. Even just little bits. Even just a reading group.