China is acutely aware that banning the iPhone is likely to send Apple into meltdown and by extension the US stock market and presidency. If they perceive that to be in their political interests then they will do it, otherwise they won't.

Sure, they won't ban them for themselves, they'll just ban them for the regular people. Then iPhone will become an even bigger status symbol.

They might if Apple is forced to ban WeChat and other Chinese apps from the App Store worldwide (which is why Tencent/CCP is having all these proxy wars targeting Apple, with the sole purpose of making it possible to side-load apps so that Trump’s executive orders will hurt Tencent/Bytedance (and future Chinese companies) a lot less). The timing of 40% Tencent-owned Epic Games’ PR lawsuit is no coincidence.