While technically they could do that, do you realize how much legal trouble they would be in in the US if they did so without disclosing it?
Alternatively, they would have to have a special build of iOS for China.
Also, none of the “citations” make mention that the Chinese law forces Apple to give private keys to China.
Home data
Health data (requires iOS 12 or later)
iCloud Keychain (includes all of your saved accounts and passwords)
Payment information
QuickType Keyboard learned vocabulary (requires iOS 11 or later)
Screen Time
Siri information
Wi-Fi passwords
You might say "what about iMessage". The link has that answer, too:>Messages in iCloud also uses end-to-end encryption. If you have iCloud Backup turned on, your backup includes a copy of the key protecting your Messages. This ensures you can recover your Messages if you lose access to iCloud Keychain and your trusted devices.
This means Apple can produce the data a government is looking for in virtually all cases, and that's probably good enough for China.
Another factor to consider is that SMS and iMessage are rarely used in China due to SMS historically being more expensive than email/data over there.
Email is the least secure method of sending data and always has been.
I’ve never paid attention to it until now, but you can selectively disable iCloud backups for any of the built in apps and third party apps in settings.
Email is the least secure method of sending data and always has been.
A placebo toggle is also an option.