Apple’s Chinese data center partner has transferred iCloud data belonging to 130 million China-based users to a cloud storage service managed by a state-owned mobile telecom provider. Apple moved encryption keys and data of its Chinese iCloud users from its US servers to local servers on Chinese soil to comply with new regulation of the Chinese government. Apple has severely been implementing various aspects of Chinese laws in recent months for its regional operations in the most populated country. To prevent their data to be stored in Chinese servers, Apple users in China can just select a different country while setting up their iCloud account.
Source: https://thehackernews.com/2018/07/apple-china-icloud-data.html