it's a full commercial product the Chinese get to copy, rename, resell,etc, all for free,...No one can copy the Red Hat full product for free, no matter how much you wish it so. They can take the same GPL'ed code from the net (just like RH does), and compile a similar distro that RH does to perform the same tasks, but it's not the RH product.
Of course they can, as I'm sure you actually know, many other than the Chinese already do. The only thing they can't legally dupe is the Red Hat name and trade mark symbol. Which is why they call it Red Flag instead. How clever of the Chicoms. /SARCASM