[kevincox]

Apple isn't foolish enough to believe that China will fold, it is obvious that if Apple refuses and iPhone will be banned.

However there is a great chance that if they threaten to pull out of the UK that the law won't pass. Even if it does it is good marketing. Who knows what will actually happen if the law comes into effect. The UK market definitely isn't small, for all we know they may back down. Or maybe their reputation is more valuable.