The article doesn't specify what task the Chinese sub-contractor would perform in developing the GIS database. The orthorectified images could be used in targeting cruise missles and the infrastructure layers could be helpful in identifying sabotage targets, but this project represents just one small area of the United States. Imagine piecing together a mosaic of finely detailed tiles and only having a bit here and a bit there. I have confidence that NIMA is not giving the Chinese anything of strategic importance.
Actually the data flows in both directions and the Chinese are not happy about it. I work in the GIS field with international data related to energy resource assessment. Many countries, China, Iran and until recently, Russia, purposely distort cartographic data to foil the evil plots of the Great Satan/American hegemonists/Capitalist Imperialists. Of course, Yankee ingenuity results in work-arounds.
I am much more concerned with critical software development taking place in these countries. Their programmers can put in backdoors and boobytraps in applications that they write for banks and other institutions.
All the state guy would tell me is the "actual compilation and collection of data from the aerial photography is done in China" and he left it at that. The local officials looking into participating in the program have a real problem with where the state's subcontractor is sending this information. That discussion dominated the meeting. There is a lot of national security stuff going on out at the base and I doubt they want to have that kind of detailed data going to the Chinese.