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IIRC foreign companies must form a joint venture with a Chinese one that would "own" the data and processing.

It mostly doesn't?

By sharing data until public relations make change necessary https://www.theverge.com/2021/9/11/22668734/google-user-data...

If China can mandate Google to do something like that and having Google submit to it, effectively escaping US jurisdiction for this part of the world, why wouldn't it work in the EU applied to a completely different set of goals?

US jurisdiction doesn't even protect its own citizens against their government requesting data from google about them, why would it protect those of Hong Kong from their ... oh wait i get it