No it isn't. The software is free. Whether China takes advantage of that is incidental.
What a tub of lard. Not when 3 (~33%) of the 10 wealthiest Americans made their fortunes on software. Free software is dangerous to the U.S. economy AND security. How could it not be, since it perfectly represents a U.N. viewpoint on the future of the world, so much so they have created entire new divisions of the U.N. to promote open source software around the world.
Unfortunately, however ironic it may be, is how open source has damaged IBM, SCO, SGI, Sun, any U.S. company who has attempted to embrace it. We've instead seen the emergence of Debian, Mandriva, Red Flag, Asianux, a trend that is likely to continue, costing the U.S. billions.