The broader question is, if the Chinese state can demand this, then what (other than popular opinion) is stopping other states (with sufficient clout to meddle in Apple's markets and/or operations) from demanding the same?
Context of the conversation wasn't hypothetical future situations, but rather the present situation facing Hong Kong protesters.
Given that the protests are about China's over-reach into Hong Kong rule of law, Apple making any changes in the immediate future to impact Hong Kong residents would be a very challenging decision to make. It would also be particularly difficult to enforce, given that Hong Kong exists on the outside of the Great Firewall, with the rest of the wider Internet.
Hong Kong residents are not impacted by this.