Can’t tell if this was discussed before, here’s the full text of the regulation in Chinese: https://www.gov.cn/zhengce/2022-11/26/content_5728939.htm
For normal users of social platforms this means that your geolocation (location based on IP address) will be displayed on your profile page and next to posts or comments you make. For users in China the location shown will be the province or region you’re in, for foreign users it will be the country. This helps to combat misinformation in cases where users are making false claims for certain locations when they aren’t actually there.
On specific details of implementation, on Weibo the location shown on your profile is the location you’re usually posting from and doesn’t change immediately if you travel to other provinces or countries. The location shown on posts/comments does seem to be real-time.
Other parts of the regulation include stronger verification of special accounts.
This isn’t about whether the Chinese government can track you, the law is meant to enchance transparency online for the benefit of other users, so you cannot lie to others and pretend to be someone you are not. While it is true that a government which really wants to can track you regardless, the average user cannot.
Sorry I got the impression that you meant trolls and bots hiding their real location to avoid law enforcement, because normal users can’t tell either way.