You just don't get open source, do you? I know it's a strange model for someone so firmly entrenched in commercial-only, proprietary software thought.
Let me draw a parallel. Linux is a development project, not commercially supported by Linus Torvalds. Red Hat Enterprise Linux is a product based on Linux with commercial support given by Red Hat. Same for SuSE, Mandriva, Red Flag and all the other commercial distributions. Sun's supported commercial product based on Open Solaris is currently Solaris. And as with Linux others are allowed, even encouraged by Sun, to sell their own products and support based on Open Solaris.
You still miss the basic fact: If you had your wish and Linux disappeared from China, Open Solaris could quickly take its place. Sun hopes that would be by the Chinese buying Solaris, but it could just as easily be by a Chinese-branded and supported version of Open Solaris.
China is standardizing on Linux
Linux was first. Sun has a lot of time and marketshare to make up.
That's right, it's a full commercial product the Chinese get to copy, rename, resell,etc, all for free, not a development project like Open Solaris. The two just aren't equivocal, especially since according to the license Sun reserves the right to sue you for patent violation if you modify the Open Solaris project code, much less what they can do if you duplicate the actual Solaris code without approval to do so.