I've spent close to two full days trying to understand the nature of the infamous GPS shift in China. After sifting through the noise, two recurring symptoms are that:
GPS coordinates (WGS-84) plot poorly on Chinese maps, with an offset ranging from 50 to 1000 meters.
Google and Apple Maps in China have severe misalignment between their street maps and satellite imagery (live example)
Various sources make contradictory claims:
Cold War-era regulations mandated introducing random offsets into GPS chips due to security concerns
protectionist measures aimed to favor GPS devices manufactured in China
China simply uses a different projection system, and the offsets are not random
GPS chips manufactured in China offset the coordinates they return, in order to match approved Chinese maps, which must follow the GCJ-02 datum
What is the actual story? This looks like the type of pervasive problem that merits a Wikipedia page, but I haven't been able to find anything authoritative yet.
The two questions suggested as possible duplicates don't answer exactly what the cause is; rather, they describe symptoms.