Let's not forget: Aliyun OS is an admitted illegal closed-source Linux fork (And likely an Android ripoff). Perhaps China should comply with basic U.S. law if they want to sell things here.
Neither one violates licensing terms for AOSP.
There are many devices that make use of AOSP for a wide range of purposes, from the well-known Amazon Kindle, which competes with Android, to in-vehicle systems you might never know run AOSP.
If you look at the Open Handset Alliance membership, you will find several that either sell OPhone devices, or develop and integrate OPhone system software. And yet Google objects to none of that. Curious, no?