People outside china might be writing in chinese. Should the CCP be able to regulate speech of all chinese-speaking people globally? Should the UK be able to regulate all english speech globally?
Right and exactly. My guess is that this phrase has actually been trained into the ML algorithm as a "no-go" by the community (not by direct action from Google) because it's primarily used in contexts where Chinese nationals or national-sympathetics flag it. If the phrase isn't generally used in contexts that don't get flagged, the algorithm would learn quickly that "nobody" wants to see it.
No, there isn't, which is why the ML system can be fooled (especially by phrases that only have meaning for a subset of users; most comments on YT aren't in Chinese, so any isolated Chinese phrase sticks out like a sore thumb in terms of Bayesian priors and first-impression effects on the ML algorithm will be strong. The system will interpret "Most users never see this phrase but it gets flagged often when users do see it" as "This is objectionable content and should be downed automatically").