If the equipment is in country X, it seems reasonable to enforce the rules of country X. Plenty of companies refuse to operate in specific countries, including China, because they don't want to follow rules of that country.
If CloudFlare chooses to do business in China, that's a choice they're making and it comes with consequences.
Maybe they can offer service where customers will only be served from equipment outside of China, maybe that's not something they choose.
If CloudFlare chooses to do business in China, that's a choice they're making and it comes with consequences.
Maybe they can offer service where customers will only be served from equipment outside of China, maybe that's not something they choose.