China is already getting pretty busy at exerting its influence on foreign entities to do things like that. Things that relate to its perceived national interest and identity, censorship, etc. Such as the demands placed on airlines as it relates to Taiwan (which isn't a Chinese territory and is a free nation).
You won't see any Winnie the Pooh baby blimps floating over London on Xi's next visit. Iran isn't going to refuse to sell oil to China over Xinjiang. Germany isn't going to refuse a natural gas pipeline with Putin's Russia. All countries, and most corporations, compromise their supposed morals on a routine basis when it suits them. Nike, they of vast sweatshop labor, feel free to simultaneously run ads promoting moral enlightenment.
> "Basically, Apple added some code to iOS with the goal that phones in China wouldn't display a Taiwanese flag," Wardle says, "and there was a bug in that code."
However, I don't believe it is fair to compare state censorship with an individual whose online reputation could prevent them from eating or having a roof over their head.
[1] https://www.wired.com/story/apple-china-censorship-bug-iphon...
Various companies that built fortunes on easily collectible data, argue against the law with the "limiting free speech" line because they don't want to spend money on the data cleanup side.
The rest is propaganda.
The actually law was put in place by representatives of the voting majority of EU.
Edit: rewrite after understanding your point better.