This is only the base code. The manufacturer modifies this code when building a ROM and can add anything. It should provide the modified sources but many chinese vendors do not do it.
Even if manufacturer provides the code, it can preinstall additional closed source programs. For example, Facebook app or some "telemetry" app that are closed source. My chinese noname phone contained an app that was trying to send my phone number and other identifiers to China as a part of a "sales report" (exact URL was http://bigdata.adfuture.cn
/reboot/salesCountInterface.do ). And one can only guess how many data does Facebook collect.
What the end user gets is a phone with a binary blob inside.
I think there should be a strict requirement banning collecting any data without consent from user. No "anonymous" "analytics" and telemetry, no crash reporting, no advertising ids, no checkboxes checked by default. There can be only legal solution to the problem of mass surveillance by software companies. Every byte your device sends to network can end up in the hands of the hackers from developing countries or NSA.