No, Apple didn't release an iPhone just for China. Instead, all these people were waiting in line for the Meizu M9, the Android 2.2-powered successor to the Meizu M8. Pretty impressive turnout for something that once started as a ripjob.
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They stood huddled in line, with their London Fig coats and their Gocci purses. Then, the doors to the Wol Mart flung open and they finally got their hands on the coveted iPone 5. Contented, they got a Pipsi and drank that on the way home in their Tayota.
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