Earlier quoted context omitted.
> Apple's behavior has been decreasingly auspicious in places like Russia and China, where they've started preinstalling state-sponsored apps and relocating servers to government-controlled provinces, respectively. This is a legal requirement to operate the service in China. Apple’s choice is between offering iCloud in China or not offering it at all in China, not between offering it with local servers or with out-of…
Apple isn‘t simply running iCloud locally as the law may require. They have transferred the operations of their entire iCloud service to a government owned company, including all keys. What Apple does in China is more than complying with local laws. They appear to be exceptionally proactive in staying in the regime‘s good graces.
Can you provide a reference for Apple's JV partners being government owned? Any company in China of course has to do as the Party tells them to, so I guess the difference is largely academic, but I haven't seen it mentioned before that Apple's China partners are government-owned.