1) There are fewer percenage wise users of Linux in China than in the USA.
2) No one is "communist" anymore in China. Totalitarian? Sure. Octogenarian rulers? Absolutely. Ruthless dictators? Yessiree bob..... but not communist, and I dont' care what the name says. You can plaster CHEVY CITATION emblems over a Renault all day long and it won't make it any different than what it is, and China is most definitely NOT communist.
3)In fact, if you are not an evangelical Christian (or Falun Gong) in an underground church, a supporter of free Tibet, or some critic of the gov't, you actually have more freedom to start and run a business in China than you do here in the USA. That (and their cynical manipulation of the yuan v. the dollar) is why their economy grew at close to 10 per cent last year.
4) Red Hat has not supplied the kernel for the Chinese version of Red Flag for over 2 years now. Some asian distro of linux does that.
Did your mama throw you into the penguin tank at the zoo when you were a kid, and you just never got over the trauma, or is it something else?
1 - ridiculous, see here or elsewhere http://www.developerpipeline.com/showArticle.jhtml?articleId=170700731
2 - call them whatever you want, they shouldn't get free software from anyone over here.
3 - more freedom in China than the US? only if you count their lack of protection for property owners.
4 - asianux and red flag are both based on free copies red hat