The Tianyi division of the state-owned China Telecom will be storing pictures, iMessage texts, notes, and calendar data from iCloud. Even though iMessage texts are technically end-to-end encrypted, in reality they are automatically stored on iCloud along with everything else. Their encryption key is, too, which means whoever is in control of the iCloud servers can read them.
Yeah so that’s just the infrastructure. If you turn on ADP or turn off iCloud backup then the key isn’t stored. So Chinese users can still use FaceTime and iMessage the same as everyone else it seems.
It seems that now, in phase 3, the Chinese government itself has taken direct control of Apple’s iCloud data center, by taking the reins from Guizhou Cloud Big Data, the private Chinese cloud services company that stored Apple’s encryption keys from February to now.
Seems it was already being stored in China anyway it’s just now a state operated telecom instead of a private one.