I see a lot of this Tim Cook need to bow comment lol, these people seem to lack any form of common logic about this issue.... In China a phone need a sim card that is register with the government aka service provider so in China a phone is kinda like a driver license it contain your real ID.... So if a smart watch have a the same ability as a phone than it also need a sim card that have to be register just like a phone.... Since the smart watch lack a slim card that can be issue by a service provider it is out of compliance. hence the issue, what Tim need to do is have a talk with his compliance officer...A good compliance officer is really important just ask VW and its diesel gate issue....It can hardly have come as a surprise to them. LTE iPads sold in China don't come with an Apple Sim for the same reasons as this.