A privacy policy serves as an online internet protocol crafted by service providers, which details how service providers collect, process, store, manage, and use personal information when users engage with applications. However, these privacy policies are often filled with technobabble and legalese, making them "incomprehensible''. As a result, users often agree to all terms unknowingly, even some terms may conflict with the law, thereby posing a considerable risk to personal privacy information. One potential solution to alleviate this challenge is to automatically summarize privacy policies using NLP techniques. However, existing techniques primarily focus on extracting key sentences, resulting in comparatively shorter agreements, but failing to address the poor readability caused by the "incomprehensible'' of technobabble and legalese. Moreover, research on Chinese application privacy policy summarization is currently almost nonexistent, and there is a lack of a high-quality corpus suitable for addressing readability issues. To tackle these challenges, we introduce a fine-grained CAPP-130 corpus and a TCSI-pp framework. CAPP-130 contains 130 Chinese privacy policies from popular applications that have been carefully annotated and interpreted by legal experts, resulting in 52,489 annotations and 20,555 rewritten sentences. TCSI-pp first extracts sentences related to the topic specified by users and then uses a generative model to rewrite the sentences into comprehensible summarization. Built upon TSCI-pp, we construct a summarization tool TSCI-pp-zh by selecting RoBERTa from six classification models for sentence extraction and selecting mT5 from five generative models for sentence rewriting. Experimental results show that TCSI-pp-zh outperforms GPT-4 and other baselines in Chinese application privacy policy summarization, demonstrating exceptional readability and reliability. Our data, annotation guidelines, benchmark models, and source code are publicly available at https://github.com/EnlightenedAI/CAPP-130.