We don't have to look very far to see how far the propaganda is damaging. In the Philippines: pro-China propaganda, bots, etc have shifted a lot of defense conversations towards the aggressor (China).
In other countries in SE Asia where the lolca Chinese population has fought hard won political battles to be accepted as full citizens, perhaps even pogrom-ed (yes), giving in to this blood and soil ethnic pride at a critical time in geopolitics will destabilize and worsen things.
They call us 'pendatang' (immigrant, foreigner) but now so many of us are voluntarily choosing to side with a blood and soil regional power that honestly doesn't give a shit about us, that has always exploited overseas Chinese in Southeast Asia when it needed help (Chinese republican overthrow of monarchy, WWII, etc) but mostly just forget we are there.