iPhones in China! Well, Not Officially

"Apple is still having a hard time agreeing on terms so that China Mobile, the world's largest mobile operator, can sell the iPhone. The latest hurdle: China Mobile -- like many carriers -- feels threatened by Apple's wildly successful App Store, according to Interfax TMT China."

Apple doesn't want to give up control of iTunes, and China Mobile doesn't like the idea of not having control of the apps that the customers of China Mobile can put on the iPhone. China Mobile also wants their customers to use the planned  China Mobile store and not iTunes for their applications. So for round 3 of the negotiations they are once again at a stalemate. This hasn't stopped the iPhone from coming to China, however, where there are an estimated 400,000 unlocked iPhones.