Apple has announced it will hand over iCloud operations in China to government-owned local partner Guizhou-Cloud Big Data Industry (GBCD) on February 28. In an FAQ posted January 10, 2018, Apple says GCBD will take over operation of iCloud under China-specific terms of service, The Register reports.
Those terms note that both Apple and GCBD will have access to customer data: "You understand and agree that Apple and GCBD will have access to all data that you store on this service, including the right to share, exchange and disclose all user data, including Content, to and between each other under applicable law."
The report adds that in November 2017, Amazon sold its Chinese AWS infrastructure to its local partner Beijing Sinnet to comply with the same laws. Russia has implemented similar requirements, with all data held by foreign companies on its citizens required to reside on Russian soil.