There is some misunderstanding in this. A SIM is not a tracking device. A SIM is a Subscriber Identification Module by itself (normally a microchip card).
A UE (user equipment, could be a phone of a modem for example) is needed for the SIM to work. Without it a SIM is just a card that carries an unique IMSI that is used (after being converted to TMSI in the network) as identification of a subscriber.
Although is true that a UE can "see" many Cell IDs (and a Cell ID is normally a NodeB/Base Station or a group of them in the same geographical location) the only info she get is signal strength (in dBs) and Cell ID number. The geographical info is not transmitted to the UE since the UE doesn't need to know where he is geographically. He only need to know what Cell IDs are available and by the signal strength he can by itself request connection and handover tasks.
That geographic location is only known by the Service Provider as administrative info, for maintenance use. It is never relayed on the network to any equipment. The UE cannot triangulate his location, the NodeB/Base Station can triangulate a UE by signal strength.
If no GPS module is also installed such can't be used to triangulate geographically (via data acquisition and database filling directly in the MCU/device in the car itself) and if it is then the UE and respective SIM will only be used to relay info back, via a data up link.
All of this to say that except if China have agents/contacts in the telecom company such tracking will be almost impossible to do just with a UE/SIM. Or in the country's security forces but if it is this one, I think that here are a lot more problems of spying that just a simple car tracking...
I worked from 2009 to 2015 as a NSN Core Network Engineer in the biggest Mobile Phone Service Provider (at the time) in Portugal, so I know the outs and ins of how 2G, 3G and 4G network work in terms of location and identification of a user - I had to by law sometimes do such as request by the Justice of Portugal, being police or higher forces.