Earlier quoted context omitted.
You are making a very good point. There's no Facebook, Google, Twitter, Snapchat etc in China. But there are WeChat, Baidu, Weibo, QQ, etc. China is more than capable to clone and/or make its own version of these companies. And these companies will do as the government says. So, I think that's an excellent example to show that tech "boycotting" China does nothing to change them. Separately, you should also keep in mi…
Whether or not China will clone an app is immaterial to question of whether all companies will fold to Chinese government pressure. There are many large examples that just didn't, and they exited the market. There are also many large examples that struck varying bargains. I'm sure the CCP didn't get everything they wanted from the referenced Apple deal, and there were hardliners who were pissed about it. And then the…
It is very material though. If your business is not special/unique in some important way, then you don't have a lot of bargaining power when the CCP officials come to negotiate the terms. Then your choices boil down to -- accept whatever is offered or exit completely. While some exited completely, I very much doubt they did so on ethical grounds, as you seem to be implying. Rather, the terms were unsatisfiable.
Trying to get some sort of an acceptable to you deal is the only thing that makes sense from a business perspective. The alternative is losing access the world's biggest market and watching the state prop up a powerful new competitor that may well compete outside the borders of China too.
If you want American companies to be able to resist Chinese govt pressure, then you need to have significant intervention from the US government and hope that they will be able to broker some sort of a deal. Failing that, it's a joke to think that any company has any actual bargaining power in a negotiation with the Chinese govt.