(edit: the source in question has removed the tweet, so I have too)
Based on the twitter conversation, it's NOT China only. It's Chinese localization only. Big difference. That means anyone anywhere in the world who set their computer to Chinese has their data sent. Including Europe which is likely a GDPR violation.
Essentially, a hash-prefix allows you to rule out / semi confirm guesses about browsing behavior.
https://developers.google.com/safe-browsing/v4/update-api#ch...