First, this document only applies to enterprise evaluation software. This doesn't apply to our OSS software and this shouldn't be linked anywhere near our OSS except in the context of signing up for an enterprise eval.
Most importantly: why is this here? This is NOT a political statement. This is a legal requirement. The encryption we use in Vault is subject to Chinese export control laws and it is illegal for us (by Chinese law) to sell in China.
To be able to sell Vault within China we'd have to restrict the encryption that could be used within Vault to government-acceptable versions.
We don't do this, therefore it is illegal for us to sell in China. We have to include this line in our enterprise terms.
EDIT: Our legal team has updated the copy in our terms to be more explicit. You can read the updated copy in the second paragraph here: https://www.hashicorp.com/terms-of-evaluation
But no, it's the Chinese looking to force a US company to use their pre-approved encryption for reasons that should be obvious.
Hashi to my ears sounds distinctively Japanese (I understand it either means "bridge" or "chopsticks").
In all practical senses Taiwan is a separate country, but there are reasons not to admit it:
Maybe it's just a political statement.