Earlier quoted context omitted.
Aren’t all the passwords backedup in iCloud as well as all your phone backups? It seems that China would just need to do a bit of work but they still can get every piece of data on the device.
Passwords are backed up but they are end to end encrypted. Check out Cloud Key Vault, it’s a pretty cool solution for keychain (password) backups designed for adversarial clouds. Unfortunately does not apply to regular iCloud backups or most other data. But a major step forward. https://www.youtube.com/watch?v=BLGFriOKz6U&feature=youtu.be...
AFAIK I never had to define an encryption password for an iCloud backup only for local backups with iTunes which means that the device only needs my Apple account credentials to retrieve and decrypt a backup from iCloud as such China and for that matter any entity which gains lawful or unlawful access to your Apple account gets to have the keys to the kingdom.