Wait, what?
The same China that makes companies that operate cloud services inside their country store the data on Chinese servers with keys controlled by Chinese companies? In the rest of the world your iCloud backups can use a key that you alone control so that even if there's a court order Apple cannot produce the contents. Pretty sure that option is unavailable in China. Maybe Apple should take them at their word and enable that, and see how long it takes before they say "that's not the security and privacy we meant!"