I agree with your stance. Lawlessness is rarely a convincing argument. There is also a moral basis for respecting the local laws and regulations; the debate over whether to follow so-called immoral laws is a complicated one, but the biblical stance is credible in the hearts of many people:

  Let everyone be subject to the governing
  authorities, for there is no authority
  except that which God has established.
  The authorities that exist have been
  established by God. [Romans 13:1]

This doesn't mean one should necessarily treat the law of the land as perfectly moral (eg MLK Jr), but lawfulness and a respect for order will serve to elevate arguments against the established practices. I believe that Apple has more influence in China when the Chinese authorities view their company as respectful and cooperative.