Yes, you're hitting on China's problem.
The China Gov WANTS to be the most powerful organization in China. Apple threatens that Gov power.
I heard Hugo Chavez was a communist, according to the free Western press. A very "Red" communist, just like the regime which put down that peaceful Tiananmen Square demonstration... 24 years ago. "Democracy Now!" was their slogan, right? (How does one say that in Mandarin?)
They meant it too. Everything would have been better by converting, or "opening up", to a Western model of Freedom and business practices.
I think this is all much ado about nothing.
Never pick fights with people that buy ink by the barrel.