It just seems like Chinese privacy and data protection regulations haven't caught up yet so Chinese mobile phone companies are abusing that in China:
In this work we study the Chinese version of the Android OS distributions run by Xiaomi, Realme, and OnePlus handsets. We measure the network traffic the handsets generate when in-use by a privacy-aware consumer. We find that these devices come bundled with a number of third-party applications, some of which are granted dangerous runtime permissions by default without user consent, and transmit traffic containing a broad range of geolocation, user-profile and social relationships PII to both phone vendors and third-party domains, without notifying the user or offering the choice to opt-out. In contrast, the data shared by the Global version of the firmware is mostly limited to device-specific information.
It's awful but "Chinese spyware" claims make it sound like sneaky sinister Chinese have spun a world-wide web to spy on people all over the globe but that is not what is happening. I hope Chines phone companies become less abusive and exploitative towards their paying customers though.