“The data will be kept on servers provided by China Telecom Corp Ltd, the country’s third-largest wireless carrier, Apple said in a statement on Friday,” Shih and Carsten report. “A source with knowledge of the situation said the encryption keys for Apple’s data on China Telecom servers would be stored offshore and not made available to China Telecom… Jeremy Goldkorn, director of Danwei.com, a research firm focused on Chinese media, internet and consumers [said], ‘On the other hand if they don’t store Chinese user data on a Chinese server they’re basically risking a crackdown from the authorities.’ Goldkorn added that data stored in the United States is subject to similar U.S. regulations where the government can use court orders to demand private data.”
They don’t need no encryption keys...
and if you believe what Apple is selling, I really pity you.
PS....
It is one of the most unsecure phones on the planet.