A report on Thursday from the Wall Street Journal notes that LTE connectivity was cut off on Sept. 28 after a brief availability from just China Unicom. While not yet confirmed, un-named industry analysts cited by the report claim that the suspension is probably from governmental concerns about not being able to track and confirm users of the device.
The issue may stem from the eSIM in the Apple Watch. Devices like the iPhone have state-owned telecom company-issued SIM cards — and the eSIM is embedded in the device by Apple. “The eSIM (system) isn’t mature enough yet in China,” one analyst said. “The government still needs to figure out how they can control the eSIM.” The LTE version of the Apple Watch had only a trial certificate to operate on the Chinese LTE network.
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Source: [H]ardOCP – LTE Series 3 Apple Watch Cut Off from Networks in China