Another "problem" is that despite its corruption and autocracy, the CCP still manages to make life better for the average Chinese. On the street it is not a hopeless hell, so right now giving up some of their freedom looks like a good deal to them.
So even if Apple manage to break free from its manufacturing lock in, that's a lot of general inertia to go against. Also, considering that Apple approach to privacy is more and more at odd in the Western World, they have enough on their plate already.