alt Hacker NewsI think OP is suggesting that the ability to sideload is what is preventing their phones being distributed in China.
If you can present a "locked down" phone to regulators, you might be more likely to get permission to sell large volumes of them - like iPhones in China.
But there still won't be Google Services so what extra money is Google to make there? The markup on hardware. But they have to compete with local manufacturers with the very same OS. At least Apple is the only manufacturer selling phones with iOS.