We already know that Apple is having some problems in China with the iPhone 4: the Beijing Apple Store had to be closed due to excessive demand by customers - customers who turned out to be smugglers and scalpers buying lots of iPhone to resell them at the grey market. Apple and the Chinese government are also facing another issue: people importing gadgets (so yeah, iPhones) from Hong Kong.
MicGadget is now reporting that Apple has cancelled many orders from the Hong Kong Apple online store, and new ones are not going through either. Read more