Apple is free to this move for business reasons, that is certainly true. But they can no longer also claim the moral high ground as a defender of personal liberty. Human rights do not stop at international borders. They cannot have it both ways.
Apple has been using privacy as a marketing tool. But apparently it will go no further than that. Privacy seems to be useful to Apple only if it can be used as a marketing tool, otherwise it's discarded as fast as some "offensive app" in the app store.