To answer your earlier question - there is nothing that Apple does in China that compromises its global network integrity. So the fact that Apple stores data from Chinese nationals domiciled in China, in China, makes no difference to the security of its data on servers in other locales. This is not complicated technology to implement and Apple's security systems are among the best.

Another interesting point - is why would the U.S. government want to impact Apple's business in China? perhaps out of spite - i get that - but they are not thinking that way. For all the talk about IP theft there has been very little stolen from Apple that didn't come from simply taking existing products apart and reverse engineering them. Apple is a poster child for maintaining brand and product leadership in an area with significant global competitors operating in different political systems.