IPAD AIR - Lost and Stolen. Can the thief use my locked device?

MY iPad Air was lost/stolen while crossing the border between Hong Kong and Lowu (Shenzhen).
The device is locked. Under the support/my devices it shows that my iPad is registered with Apple and I do have the serial number for the device handy.
I tried to use "FIND MY IPHONE" and the device does not show up. It is possible I did not activate that function although this is unlikely.
Can the thief use my device by erasing all the data? Can Apple trace the device and if so, who do I report it to at Apple ?
Please help.

Thanks for your reply.
I also read somewhere that in the event I use the remote function via iCloud to delete the contents of the iPad, the thief could then use it. I have no intention of doing this.
I have just secured myself for now and changed all my passwords including the Apple user ID one.
I guess my best bet would be to report and register the number to the local authorities in case it gets returned / shows up by some good samaritan ?

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