The subject of the second clause is 'the Chinese government', the verb 'to want to', the object 'replace Windows'.
This whole thing qualifies the first clause, 'the OS'.
But the semantic relation between these two clauses ("with") is not established.
It's like saying "A detailed look at the mountain John wants to dance with an elephant".
Doesn't make sense without the "on" which links the two bits. </aside>
PS: Excuse my pedantry; this stuff really interests me.