Interesting. Although I wouldn't say this is a reason to believe it's possible for google maps to be wrong everywhere, since everywhere else maps do just work while as is very evident from this video, people know full well that the maps in china are wrong and can see that for themselves. It's also a written law and everyone can look it up so it's no secret even if people (including myself) were oblivious to this. Also worth pointing out that the map is more just distorted locally (like a perlin noise). If the earth were flat things would stretch out west to east the further south you go.
Basically, just because this area of the map is documented as wrong doesn't mean everywhere else is. Still an interesting thing to learn though thanks for showing the video!
I just did some further reading into this and it's distorted for a reason apparently
"China chose to adopt a system of coordinates that debuted during the Cold War era to bamboozle foreign intelligence agencies. GCJ-02’s algorithmic offset means your real location could be up to 500 meters east, west, north or south (yes, it’s that random) of what you see on the map."