[papersmith]

Apple actually has a giant physical store in Beijing.

http://www.apple.com.cn/retail/sanlitun/

I know it because of this video:

http://www.youtube.com/watch?v=w8vqSJAOC7I

They're also building a big one in Shanghai.

http://gizmodo.com/5279167/apples-massive-shanghai-store-mix...

Interestingly enough they don't sell anything online. Maybe it has to do with Chinese buy everything in cash.