Windows has a lot of prestige in China. It's imported from America. It's expensive. Working for Microsoft in China is insanely high-prestige. When non-engineers in China see I'm running Ubuntu they wonder why. Engineers who use Linux at work almost all have Windows machines at home, always a pirated copy.
I'm pretty sure a lot of Chinese bureaucrats are grumbling about this. "Oh now we have to use a crappy Chinese OS. Free is for losers!"
But I'm only surprised that it took this long. China is going to be the biggest economy on the planet. So far China has maintained a degree of autonomy and sovereignty unlike any US ally in the three inner rings of the NSA surveillance hierarchy has.
I expect other governments to follow. Most governments are in a position where they cannot compete with the NSA, domestically or internationally. Most don't have 1% of the NSA's budget for surveillance. They may all wish they could spy on their people like the NSA does, but wishes, horses, etc.
Some will realize that the only way to win is not to play the surveillance game. Instead they will put their resources toward securing their government and enterprise computing, and maybe even securing their populations, by banning US products and services associated with NSA surveillance programs.