Government taxes foreign phones in China making iPhones more expensive than those in other places, including Hong Kong. iPhones are not allowed to use the AI being sold with the phones elsewhere, plus a host of other restrictions. So basically, an iPhone purchased in China isnâ(TM)t the same as an iPhone purchased elsewhere. Many people buy them from third party distributors to get non-mainland SKUs or go elsewhere to buy iPhones to sidestep restrictions/tariffs/taxes/etc.