http://qz.com/356233/apples-capitulation-to-china-undermines... http://www.wsj.com/articles/us-presses-china-on-bank-technol...
RIM at the time fought Saudi Arabia on the same thing, but has also eventually given up.
http://www.dailyfinance.com/2010/08/07/rim-deal-saudi-arabia...
Companies will always do what it's profitable for them, for RIM Saudi Arabia at the time was a big enough market, today it's China. While there might be some backlash, most people don't care and while you might need to invest money in spinning this if a country doesn't allow you to sell the products in the first place you lose by default.
ATM there seems to be sufficient public pressure to fight against these decisions in the US and Europe, but not so much in other regions, and if China gets to access your phone YBA the US won't be in a position to give up on it either, not that they seem to want to at least at this point in time regardless of that reality.