Seems like a lot of posture and innuendo without a substantive argument. I was hoping to read that Apple was cooperating with Chinese security forces but nothing is actually said on this topic. At least it does mention the removal of some apps relating to Tibet; since then Apple has done the same in HK. I don't know if they have done so in other countries (removed apps due to political pressure).
But the Chinese SKUs have the same security mechanisms as the US SKUs and there is no evidence that the FBI faces any greater or less challenges in accessing phone data.
Germany also has a "local data storage" requirement but I guess they aren't scary like China is.