If you are stating that AWS is required to provide all data flowing in and out of datacenters to the USA Government, but not the Chinese government, then you are 100% wrong.
This is why Chinese regions have to replicate nearly all services in their own regions. No intermingling with other regions.
The difference here is that American companies are forced to cooperate with their government with any data, it doesn’t matter where that data is located. That’s why China decided they want their own infrastructure, and other governments, like EU, are taking similar steps.