Yes, Canonical is resposible for their own doing and not for the doing of any government. If someone misuse a legal OS it is not fault of Canonical. And not only some government is watched by the people, but also Canonical. The reputation of Canonical would suffer considerable should comes out that they are helping any undemocratic system. And such things come out. Even such a gigant like google has to be carefull with helping (or tolerate) some officials by censorship.
If I understood the news well China chose Ubuntu as a reference OS and this is good. But nobody force anybody to use Kylin in privacy. And if a goverment or goverment officials misuse one OS they would do it with any other OS either.
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