Apple’s second largest market for iPhones is China.

It took careful negotiation though for the Chinese government to allow Apple to bring its iTunes store to China because that would give Chinses citizens access to films and books not approved by the government.

China also has a strong history of prohibiting foreign competition, giving Chinese companies open access to lucrative markets. After allowing iTunes to operate for just a few months, the government decide to ban it.

How has Apple responded? How should foreign firms proceed in trying to increase their presence in China?