Well it would if things are setup according to best practises (i.e. use TLS between the backend connections). Presumably most people dont do that.

Again, you are assuming a normal situation. The point is the country itself is operating (or has a heavy grip and perhaps even subsidizes) the backend CDN and enforcing that stuff in a rudimentary way.

"TLS between backend connections" usually involves termination and decryption on the frontend webserver and re-encryption of the upstream traffic, whatever it may be.