This is standard operating procedure for the CCP. They are a truly ruthless, sinister group who have no scruples about ensuring compliance and using leverage on behalf of Chinese interests. Just look at what happened to Jack Ma.
It's standard procedure in every country for some investigations.
Outside of immigration issues, you can only be made to surrender your passport if you have been arrested and indicted for a crime, as a part of bail. That power can only be granted by a judge.
China arbitrarily traps people in China without any such thing or any due process whatsoever.
This has historically not been the case, for example https://en.wikipedia.org/wiki/Haig_v._Agee and https://en.wikipedia.org/wiki/Paul_Robeson
As for your second case, US schools teach about the perils of McCarthyism. You neglected to link to the subsequent Supreme Court ruling in 1958 overturning the confiscation of the passport over protected speech. Note how long ago that was and how it's taught as a black stain on US history.
What makes you think there's no legal process for blocking nationals from leaving China?It's a very common instrument and in a bunch of countries it's an administrative measure with even less scrutinity than a judicial mandate. Do you consider France or the UK to be a countries without rule of law or due process?
But to the point in the US, for example, the government can just issue a warrant for you as a material witness or flag your passport and then you can't leave; these are hardly due processes and more like legal workarounds to do exactly the same thing; the US has disappeared plenty of people in much more sinister ways than that, however, so I agree that there's no equivalence here: the US is worse.