More related to the Microsoft-vs-Linux war: This isn't likely to do much to erode Microsoft's hold. The reason Microsoft can offer services that lock out Linux machines is that its standards are closed, and nobody can write a Linux client for, say, MSN Messenger because they never get to see the standards. Linux standards are generally promiscuously open, and most every significant Linux-based service has an existing MS Windows clone. So this won't probably be locking out any Microsoft users, really.
As regards China, the really big problem is imagining them trusting IBM to hold Chinese code on IBM servers and not peeking. IBM, last I checked, was a big Western capitalistic corporation, Linux or not, which would do little to nothing to mollify the fears of China and its budding technocrats.
Francis