Also consider a large number of Russian and Chinese spies have been American citizens born in America and who've lived in America their whole lives. Collaboration with a foreign government is not 1-to-1 with what country you're a citizen of.
It's certainly not 1 to 1, but it's hardly farfetched to believe that someone born in China and presumably still a citizen of it (and thus not of the US) is more likely to abscond to China with the proprietary IP of an American company than a random American citizen born in America who's lived there their entire life.
Yes, of course, but if you start looking at everyone from a foreign country with suspicion, you're not going to have a tenable situation. For certain extremely high-value things like military and defense projects, those precautions are necessary, but otherwise you're just eliminating large amounts of potential talent for probably no good reason.