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It was actually a security issue. He gave unauthorized access into his company's computer network to a Chinese company.
whats the difference between this guy giving his access to a company in china and you calling your credit card company right now and some guy in india answers and says "thanks for calling, my name is dave. how may I help you?"
A big difference.
He let other developers and programmers access his company's computer network when they weren't authorized to do so. That's a fireable offense. It doesn't have anything to do whether it was China or not. Even if he let some guy from the next building over into their computer network he should have been fired.
