Since Tencent is used for a malware list instead of Google for all users who have their iOS region set to China (even if they aren’t physically in China) this would technically allow them to falsely flag websites as malware even for some people outside of the country. But, this is a user configurable setting, and you can always bypass the warning.
In fact, there may be cases where being blocked by the Chinese authorities lends credibility to site, whereas being flagged for malware does not.
These are definitely edge cases, and no doubt the China government would to completely block a site in most circumstances, but it is another tool they could use. It also increases their coverage - the current censorship tools only cover China, but this covers any _device_ where the region is set to China (meaning it can apply to some people outside of China, and continues to apply to people who have temporarily left China).