Apple's iCloud to store user data in state-run servers in China

The video discusses the transfer of data from US servers to Chinese servers by Guizhou Cloud Big Data, facilitated by a deal with China Telecom to provide iCloud storage in China. It highlights the relocation of iCloud encryption keys from the US to China, while noting that Apple offers Chinese users the option to opt-out by selecting a different country for their iCloud account.

What implications does the deal made by China Telecom have for data storage in China?

What was the previous location for storing encryption keys for iCloud data?