I don't know whether this should be hastily dismissed as "FUD": Do you want to live in a world where all of your country's critical infrastructure is owned by Chinese state-owned corporations as soon as your government can no longer service its loans to Beijing?
... The situation is certainly not entirely comparable, but since the start of the Russian war of aggression against Ukraine, we have seen the problems Germany has had with the fact that its gas storage facilities belong to Gazprom...
The case you're referring to was the adoption of a Linux based OS (LiMux) by the city administration of Munich - here is the Wikipedia article on the subject.
Unfortunately, Munich totally rolled back Linux adoption for some shady reasons later on: