These companies are hardly providing competition to MS here in the US... at least not with me. (I can't read Chinese or Japanese.)
But by your comments I suppose you would prefer to see the American-made Microsoft products shut out of foreign markets? And by Red Flag Linux, no less... a company which lifted its source code from Red Hat, an American company?
Like you, I prefer strong competition too, but when we reach the water's edge, I back American companies with very few exceptions.
The graver danger to US technology is the outsourcing of US IT engineering jobs. If something is not done about that then we will lose leadership in yet another industry.
It is deeply difficult to control technology, I do not have much faith in the abilities of governments to do so. It will be interesting to see how "freeware" plays against proprietery software. I do not think anyone knows. As capitalist I am all for competition, and no sector is more brutal than IT.