My advisor refuses to write me a recommendation for my PhD application unless I apply to his lab
You will need to find another reference. 

I recommend not keeping this supervisor up-to-date on your application status. 

When asked why his reference was not included, probably you could just say factually and without sounding judgemental that the student advisor offered a reference only under condition that you would work for them, so you sought another reference [pretend that you do not realise what that means - coming from China, you can probably present it, if asked, as if you assume this may be the norm to only give out references under these conditions; of course, this is not true, but I think your best bet is to take the "naive" route]. 

You also have publications with this student advisor, so that already proves that your work is good enough to pass peer review - a direct reference from them would be nice, but is not anymore vital at this stage.