Two weeks ago Apple signed a ground breaking deal with China Unicom stating that the iPhone would be available in china via china unicom.
But as it is illigal to have a mobile phone exclusive to one network in China, Apple are continuing to disscuss deals with, China’s larger carrier, China Mobile. China Mobile Chairman Wang Jianzhou confirmed that his company is disscussing contracts with Apple over the iPhone.
But if Apple were to have the iPhone available on China Mobile, they would need to modify the iPhone slightly so that China Mobile’s network would function correcly. Alternatively they could just leave the iPhone to run on the much slower 2G.