We don't know this to be the case. Unless you some evidence to the contrary ?

simonh · on May 8, 2018

The Chinese government made Apple hand over control ofiCloud infrastructure in China to a Chinese company. So those encryption keys stored in iCloud are now in the hands of aChinese company subject to Chinese government control.

Not exactly an ideal arrangement, but it was likely that or switch off iCloud in China, or pull out of China completely. Which to be fair Google actually did.

threeseed · on May 9, 2018

Again. There is no evidence that has been presented to date that indicates that hardware keys were given to the Chinese government.

We suspect it may have happened. But nobody actually knows.