China has always had strict laws when it comes to technology and the internet. They are trying to give Microsoft the run around and Microsoft products are no different there than they are in the rest of the world. The rest of the world has no problems with Microsofts products. At least they don't ethically have problems with them.
No, I don't believe that Microsoft is in violation of China's anti-trust laws. While Microsoft has had problems in the past, they are currently being investigated for cyber spying. I do not think that these accusations have merit. Approximately 90% of China's Microsoft Office products are illegal copies that are being used.
I'm not familiar with the anti-trust laws of China. This is a topic in which I'm not well versed or knowledgeable, but Microsoft is not known for handling issues very well. If there is a problem with a program they would rather take it off the market than fix the problems with it. Skype for example has multiple issues and instead of answering customers questions they just do away with the old program and update a new one with a few fixes and a few new bugs. Even if Microsoft were in violation of China's anti-trust laws, I'm not convinced that they would do everything in their power to right that wrong.
No, I think the Chinese government does not trust American companies. I think the Chinese look for reasons to probe and look into any foreign companies. I think Microsoft is a very good company that tries hard to follow all of the rules in every country it operates in. I don't think Chinese will find any thing wrong.