iPhone in China - Why no WiFi

China is requiring all phones to either have their own wireless standard installed called WAPI, or not have offer WiFi. So to comply with this Apple disabled WiFi in the iPhones sold there. It seems WAPI can be run with WiFi equipment and I am guessing a firmware update will fix this, but per this article it actually needs hardware modification. China's government is trying very hard to help push China as a technology leader.