As reported by BBC, state-owned company, China Telecom's Tianyi Cloud will manage local ICloud data, which means emails, pictures or text messages will be stored by this Chinese Company.
This Feb, Apple and Guizhou-Cloud Big Data Industry Development (GCBD) agreed on moving local users' data storage to this China's local company. However, due to the construction of its data center, GCBD handed over this task to China Telecom.
This move has prompted concerns over data privacy. However, Sohu news reported that storing users' data locally will help improve the speed and reliability of service.
Please check more details on SBS Mandarin Website.