China wants Apple to bring their iphone to China. There hasn't been an agreement yet because the companies still need to work out their differences over revenue sharing. China Mobile is China's largest cell phone carrier.
I think that Apple will eventually bring their iphone to China because they will want the money it brings in. They will reach some sort of agreement with China.
http://www.boston.com/business/technology/articles/2007/11/12/apple_china_mobile_discuss_china_iphone/
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