I have no idea what your first sentence is supposed to mean.If that were the case, they wouldn't have offered it to begin with. They did that to defer to the Chinese government. So if you're keeping score; Nike is pulling an American flag shoe because "oppression", while at the same time kowtowing to the Chinese Communist government.
Of course they deferred to the Chinese government. The shoe was going to be sold in China. If the Chinese government says you aren't going to sell that shoe here then you can't sell the shoe in China. Why would Nike continue to make a shoe it can't sell??