"Storing encryption keys in china" could mean anything, it could mean having edge services with private TLS keys for instance. Which means semantically you're correct, but it doesn't mean anything.

In fact I'd argue it's no different than hosting in the US or UK.

The UK for example has laws that forbid you from withholding encryption keys or passwords. And there is an equivalent of the NSL (National Security Letter) which forbids you from even telling anyone that you have complied with a government or law enforcement request.

So how is this relevant?