Why are the ethics of working with Yandex or Baidu any better or worse than the ethics of working with Google or Microsoft? Except that they're not western.
The logical answer is that a person like this wants a very strong firewall, so ethically impure bits don't cross into their LAN.
A completely reasonable question that you should be able to answer if you're giving your money out to them.
The United States (I guess that's also the premise here, I'm not USA citizen myself) has notable rivalries with several countries, including China, Russia, Iran, North Korea, and Venezuela. These nations are often considered adversaries due to various geopolitical tensions and conflicts.
I guess that Kahi is doing nothing illegal, so if people have that kind of question, it feels legitimate to reply with a demand of what is the extend this patriotism stance is going beyond the judicial requirements.