Both are wrong. It's business. It's not shady to buy something and not tell the seller who you are. It's also not shady to TRY TO charge more because you know that your buyer really really needs what you're selling. It's called business. You negotiate the best you can for the best price you can get, and you move on.
In China, however, they have been dealing with command and control style business for so long, they think they can pull some strings and get things fixed. And they may be right. But I suspect eventually China will determine that letting this company die and not fleecing Apple will be in their best interests. Because we know Apple bears grudges, and if they extract $2 billion from Apple, Apple will make sure that eventually that gets extracted right back one way or another.