Earlier quoted context omitted.
I think China has some extra leverage to deploy here: China can respond "We leave it. Oh, one more thing: our domestic market is off limits to you. Pray we don't alter the deal further by kicking your manufacturing out too."
Kicking out Apple manufactoring won’t happen, because it’s actually dangerous to Chinese manufactoring. Apple is currently one of the only companies who could deal with being banned in China. It won’t be cheap or easy, but Apple could move manufactoring. They already have a deal with an Indian company who makes older iPhones for the indian market. Apple is also one of the few companies who can either absorb the addit…
Ah, but if you don't care about setting a public example, you can punish them in more subtle ways.
The traditional trick in corrupt countries is to have a bunch rules that aren't enforced and everyone breaks all the time - then if the leaders decide they don't like you they just start enforcing the rules on you.
A corrupt regime would simply announce they were shocked - shocked! - to find parts of Apple's Chinese supply chain had low environmental standards.