The subsidiaries of these companies are subject to the intelligence law and whatever data these subsidiaries owns. If apple keeps US data away from the apple subsidiary in China then Apple is physically impossible to hand the data to Chinese government
Apple keeps data in China. [1] They specifically made the move because of China's National Intelligence Law. [2]
>To comply with the law, for instance, Apple announced that it would transfer the operation of iCloud in Mainland China to a government-sponsored data company named Guizhou-Cloud Big Data.