You sure don't hear much about the Chi-Coms anymore, do you. Bush says that "We see a China that...works to secure the freedom of its own people."
Aside from the absurdity of this, it shows how Bush thinks. He's talking about China's involvement in the "war on terra." As long as you are with us in the war on terra, you are working to secure the freedom of your people, regardless of the human rights abuses of your own government.