"CAID" isn't a public iOS technology, and the article doesn't say what it means.
Some googling returns: https://mmachina.cn/wp-content/uploads/2021/02/MMA%E4%B8%AD%...
Apparently it means "CAA Advertising Id", where "CAA" appears to be the "Creative Artists Agency", some sort of Chinese advertising group. (edit: wrong organization, it's actually "Chinese Anonymization ID", not a group. the group behind it is https://trackingio.com/)
Searching "CAA Advertising Id" yields more Chinese PDFs.
From what I can tell here, "CAID" is a partnership between Chinese industry and Chinese government to track users across apps for better tracking.
The issue here does not seem to be that they've bypassed a technical restriction, but that the developers of major apps are using a shared identifier that Apple doesn't like.
In the US, the analogy would be if apps had tracking SDKs in them, that fingerprinted users across apps, in order to better target them for advertisements, and then the US government can pick up that data and do whatever they'd like with it.
The strange part to me, is that this actually is the situation today in the US.
I don't want to shill for China, but why is this a story? This has been a US industry since at least Doubleclick was invented.
edit:
It's a story because they're using the iOS keychain API to persist and share the tracking identifier. As far as I know, this is a new technique in the wild, but has been theoretically possible since iOS launched. It's only now being seen as necessary because of the iOS14 privacy changes.
It's curious that American ad companies seem to understand Apple's intent and are opting not to risk their business by expanding their SDKs to use keychain sharing techniques, even though they're surely aware you can do this. Chinese ad companies seem ok with risking their clients apps being banned on the app store.
Apple can mitigate this by giving users control of the data and sharing related to keychain services.