[ique]

Apple has caved to china many many times, a quick googling of it will give you a list.

The difference between the "old" content scanning and the new is indeed that they are now willing to "use" the results of that. Facial recognition was client-side only (or so they said), the results of which never left your phone.

Now they're doing content scanning and sending it to themselves as well as others.

In parallel Apple is starting up a growing advertising business, hiring aggressively and expecting that to be a big part of their future revenue. If they're now "allowed" (by its users) to do content scanning _and_ sharing the results, why wouldn't they use those results for themselves to target you with ads?