China can do what China wants, including telling Apple what kinds of phones it will allow to be sold its citizens. Hey, I've listened to some of the talk radio pundits try and make some kind of big deal about this too. While I was listening to one of them, I thought "so what?". And, I thought some more. Then, realized this their position on this is total ****.
The US dictates all kinds of things companies will or will not do to its products "in the name of safety" if they want to sell them here in the US. For instance, brake lights can't be attached to a tailgate that moves up and down. If European car manufacturers want to sell their cars here, they must redesign and comply. Recall the VW emissions fraud, and what the US did to that company!
China has sovereignty over the Chinese living in China. Unless you are for a one-world government where everyone has the right to tell Americans how they must live, Conservatives are really barking up a bad tree on this issue.