[MichaelGG]

The bargain is probably something like: "Customers using our China POPs give us money. We like money."

And is it thought that China lacks the resources to infiltrate CloudFlare? The KGB compromised the CIA and FBI over many years for paltry sums (under a million). If China really wanted to extract IP they can certainly do so. While operational security (like HSMs and procedures) might stop people from walking off with key material, I find it really hard to believe companies can stop adversaries from walking off with source code, know-how, technical plans - things that employees need access to.