Cloned in China reports on an article [Google translation] from Chinese site PCPOP claiming that Apple partner Foxconn has begun manufacturing WAPI-capable iPhones for distribution in China. The Chinese WLAN Authentication and Privacy Infrastructure (WAPI) standard is similar to the global Wi-Fi standard.
The iPhone launched in China at the end of October, but did not offer Wi-Fi-like connectivity due to legal restrictions imposed by the Chinese government. The restrictions were lifted prior to the iPhone's launch, but not before Apple had already produced a significant quantity of the WAPI-less models. At the time of the iPhone's launch there, China Unicom representatives had expressed hope that revised models offering WAPI could be available by the end of 2009.
Article Link: Apple Finally Preparing to Launch WAPI-Capable iPhone in China?