Profit Over People
Free software puts users in control. China wishes to deploy free software at the level of government. This choice offers the best in security. However, the chinese government is more than willing to have its citizens use proprietary software. Proprietary software can be used by an outside agency to spy upon its users and censor information. Free software provides protection from such oppression.
At this time, Skype's promotional ditty says -
"With Skype, you can talk to anyone, anywhere for free."But with Skype, you cannot talk to anyone, anywhere freely.