Every country has a different way of focusing its economy. Some, like the United States, focus on knowledge work. Others, like China, focus on manufacturing. No matter your focus, though, one good rule of thumb is to not insult the companies that make your economy possible.
The Chinese government has taken a different view on this concept. This week of the Chinese state media accused the iPhone of being a national security threat. Referencing the iPhone's common places feature, they stated that anyone with access to the phone's data could easily determine the habits of a Chinese citizen.
For those who may not be aware of the feature, which is also available as part of Windows Phone Cortana, it follows your activities and logs the places you visit often. This allows Siri or Cortana to navigate easily to your favorite spots. From anywhere you can say "Take me to work" and be taken to your common spot.
Clearly, this data in the wrong hands could be dangerous. With the NSA's many data requests from Apple, it's not unreasonable for the Chinese government to be fearful. However, publicly speaking out against a company that spends a tremendous amount of money in your country manufacturing their product may not be the best way to solve the perceived problem.
Also, suggesting that that company has a backdoor for the NSA into their products may not be a great PR move either. Apple fired back against this allegation saying that they have never created a backdoor for any agency. They even went so far as to say they've never directly worked with the NSA, but had only replied to requests.
The chances that Apple and Foxconn will move their manufacturing out of China is low. However, a public statement like this certainly will make the companies consider their options. Apple has recently started to move some manufacturing back to the United States after all.