That is a terrible argument. If the iPhone is that bad to the point 'nobody' would buy it, Apple and Chinese contractors would have learned very early and any losses would be borned by both parties. They would found out about it early and would accept the losses as part of the normal capitalist adventures. But since the iPhone is proven to be such a success, your 'nobody' argument is pointless. If the fad wears out, it would wear out gradually and Apple and contractors would begin to wind down production to match.
But the point is this: Since capitalism depends on consumption and China's rise depends on the same, except that it is foreign consumption for China's cheap labor, China is actually more dependent upon said foreign consumption than we on China's cheap labor because China does not have a monopoly on labor, let alone cheap labor, which other countries are willing to provide if the foreigners are willing to invest in education and training.
What you say is obviously correct.
Even that part, where you imply china does get a small cut in iPhone success ... but also you yourself said, it's as per capitalistic rules... profits are divided in proportion to contibution and risks taken.
What is china's contribution: cheap labour.
What is china's risk: nil
Who has maximum contribution and investment risk: Apple.
Hence, china reaps small benefits of "exporting" Billions of dollar worth of iPhones (in fact each and every iPhone is "manufactured" in china ... so almost entire revenues of Apple Inc. would be china's exports):
Apple buys components from South Korea, Japan and Taiwan (and even within US),
Apple imports these components into china,
Apple gives these components to Foxconn for assembly, which uses china's cheap labour,
Apple exports the assembled iPhones .... off course from china, which gets counted as Billion $$$ exports,
Apple worries at what price it will sell, who will buy etc.
Apples gets all the revenues and profits.
See what Apples role is .. what South Korea, Taiwan and Japan's role is ... and what China's role is: providing cheap labour and counting Billions of $$$$ in it's exports.
The the key is it isn't Apple's isolated story .... the story is the same for Dell, Philips, ToyRUs ... bla bla ... !!!
It's like saying, if India office of Intel designs an Intel chip, all Intel revenues on that particular chip should be "India's exports" .... even though all revenue goes to Intel, profit goes to Intel ..and all the risk and investment is borne by Intel. Is it?
No dear, it's only the wages that Intel pays in India .... and only that gets counted in India's services exports. Off course, not the global sales revenue on that chip.
Find out what proportion of those 400 Bilion dollars are owned, marketed and profited by MNCs.
And what is left from 400 Billion after these MNCs are removed .. is what is china's true exports.