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Passwords are backed up but they are end to end encrypted. Check out Cloud Key Vault, it’s a pretty cool solution for keychain (password) backups designed for a

• dogma1138 9y ago
  end to end encrypted doesn’t mean much when your decryption key is the Apple account/iCloud password. AFAIK I never had to define an encryption password for an iCloud backup only for local backups with iTunes which means that the device only needs my Apple account credentials to retrieve and decrypt a backup from iCloud as such China and for that matter any entity which gains lawful or unlawful access to your Apple account gets to have the keys to the kingdom.
  • abalone 9y ago
    You didn’t watch the video did you. That’s not how it works. The key is your device passcode.
    • dogma1138 9y ago
      The key for the backups can’t be the device passcode because the device passcode protects the key stored in the Secure Enclave on the device that is the local encryption key also 6 digits isn’t nearly enough entropy for any key derivation algorithm. I can download a backup from iCloud and unpack it in any device or use a 3rd party application to view to content of the backup and the only thing I need is the Apple account password used for iCloud.
      • abalone 9y ago
        "We have a feature called iCloud Keychain Backup, and here's what we do. We have a new credential, the iCloud Security Code, and most often this is the device passcode." - Apple security architect, in the aforelinked video, which you still didn't watch