You guys are familiar with the Snowden disclosures and how all telecom companies and very likely all major tech companies are spying for the US government right?

At this point, this is table stakes for big tech and it's completely anti-democratic. China may have a very good domestic dragnet but clearly it's playing catch up compared to the foreign intelligence assets the USG (and five eyes) has.

Australia has similar laws also.

Splitting hairs here, but the wording of your question gives the impression that one could choose not to collect any data and then be free of said obligations, but I don't think that's the case. Does anyone know?

There is a difference between being required to collect data that they wouldn't otherwise need for a legitimate business purpose, and being required to provide access to data they've already collected to their government. I'm no expert but it seems like a Chinese company could design products that don't collect a bunch of extraneous information, without violating Chinese law.

That is the case.