I'm sorry, but I must insist there is a HUGE difference between removing an app on the App Store and granting third party access to local storage. Also, if a government would actually pass a law like that - requiring access to everyone's personal phone to scan their photos, they could pass such a law at any time they wanted to, even if Apple abandons their current CSAM scanning plans. They could legally force them to implement it. If it came to that, I truly believe Apple would pull out of that country based on their core beliefs. And even if they were only motivated by money, they'd be foolish not to pull out of that country, as complying with such an unreasonable request would surely cause FAR more financial damage in the long run through bad press than their lost sales from that country.
Did I not already cover this? Stop spreading this misinformation. The on device scanning alerts APPLE (not the authorities) and only if 30+ CSAM matches are uploaded to iCloud. The matches are then manually reviewed to be 100.0% sure that they contain CSAM, and even then the authorities are not alerted by Apple - Apple submits the report to NCMEC and THEY work with law enforcement.
And the whole rationale for on-device scanning is precisely BECAUSE of Apple's dedication to privacy. Rather than decrypting billions of photos in the cloud to scan them, they are scanned on your phone, where Apple can't see what's going on (i.e. it's private). Again, Apple sees NOTHING - no scan results period UNLESS you have uploaded 30+ matched CSAM images to iCloud - and then the only info the see is on only those photos (not all your photo).