Earlier quoted context omitted.
> The difference is the ease with which they can demur. If Apple can be cowed by China into adding fake CSAM hashes by threat of banning iPhone sales, they could be cowed to surveil Chinese citizens in the search for subversive material. It's no skin off China's back if it's harder for Apple -- they'll either make the demand or they won't. This changes basically nothing.
I think that's a too simplistic view. It's kinda true, but ignores how humans really work. Apple will be pushed around to a degree, but there will be limits. The harder the ask now the less China can ask later. And the more Apple can protest about the difficulty and impossibility and other consequences they will face, the more likely China is to back off. Both sides want to have their cake and eat it too, and will co…
The direct job losses are one obvious problem for the CCP but a company like Apple saying "We're moving production to Taiwan/Vietnam/US because of security risks in China" would be catastrophic for the (tech) manufacturing industry as a whole in China. No sane Western based CEO will want to be seen taking that security gamble.
Do I think Apple would do that and forgo the massive Chinese smartphone market? That's another story.