That should be good news to the desktop Linux (in general). Anyone who's tried to use Linux from a Chinese perspective knows how much biased are the distributions towards European/American users. In 10 years, it has improved a _lot_, but there are still quite a few obstacles that make Linux less user-friendly to anyone not European or American.
The article mentions a few of a the problems. For example the default online services are quite different (search engine, weather forecast, email provider, IM, music store, online storage...). I personally hope it will lead to support for QQ (the main IM service in China) on Linux :-)
There are other improvement to Linux that I think could really help its adoption in China.
I wish there could be an easy way to show a date in either the Gregorian calendar or the Chinese calendar. And, while the default input method now works pretty well (eg: almost every program work with iBus), alternative methods are still far from working correctly (eg: Tegaki can barely recognize any complex character drawn).
Although at first it might seems that China should be very welcoming to an OS independent from a US company, I think the market is much _harder_ to change than in US or Europe. There are two mains reasons. First, Linux doesn't have any price advantage (Windows is still mostly "free"). In addition, A large part of the typical Linux first-adopters (aka young technophiles) dream of doing like their American big brothers: getting an Apple laptop, or a fancy Windows 8 tablet.
I wish all the best for Ubuntu in China. I'm quite hopeful they can manage to improve at least a bit the OS ecosystem there, and looking forward to the improvements they will bring to the F/OSS community :-)