If this act didn't stand to hurt anyone, why did China care in the first place so much? Let's look at the converse, what does having a flag in a phone do that hurts China?

Your response doesn’t really address the issue though. Say you can find a company that conforms most to your own moral standards (which is already unlikely, depending on where you arbitrarily choose to draw that line), that’s not good enough. You need to find a company that meets those standards, that only does business with other companies who also meet those standards, and only employs people who again meet those standards. That’s simply not realistic in any way.

The real answer to this question is that in order to participate in society, you need to accept that you’re going to have to interact with people you disagree with. Otherwise you can choose between trying to exclude all those you disagree with, or excluding yourself. Neither of which are tenable. If a company goes further than you’re willing to participate in, then your only option is to not work for them. Anybody working at Apple today likely started knowing that Apple did business with China. If they can’t handle that they should leave, and prepare themselves for a difficult job search for a company that doesn’t. But trying to force others to make the same decision is just completely unreasonable.