According to iPhone Asia, Foxconn is readying two iPhones for the Chinese market. One will be the Wifi-less one we’ve heard about before. Another one will have Wifi according to their source.
… The same Foxconn source whispers that another special iPhone model for China is under development. This second model iPhone for China is a WiFi/WLAN Authentication and Privacy Infrastructure (WAPI)-capable prototype (presumably Model A1325), which may be ready for mass production by late 2009. Note: Model A1325 will support bandwidth 2400 – 2483.5 MHz (see image below). This band is currently used for a variety of technologies today, including Bluetooth, cordless phones, and 802.11 (WiFi).
iPhone Asia has the whole China iPhone saga mapped here.