1) Big company partners with distributor. 2) Distributor has security issues. 3) Gov is already aware of security issues, says nothing. 4) Big company becomes aware of issues. 5)Gov steps in and pitches a deal: i)Both big company and distributor must deny. ii)In return, gov gets to: iii)Preserve any existing contracts iv)Protect the big company and distributor, with any legal, trade, or commercial benefits
Additionally, Amazon and Apple are two of the still allowed to compete western companies in China that they haven't booted out of their markets, it could be that Amazon and Apple also want to retain the Chinese market and don't want to appear like they are helping while they have the cover of the NSL.
Amazon and Apple are caught in a tough spot and the hardware issue/espionage device is definitely true. It is probably just that the people that know in the company aren't allowed to say and the PR team is not part of that 'need to know' group. Either way, trust of Chinese manufacturing is over, which hits Apple very hard in both market and domestic trust.