That rust is pretty irrelevant. Check out this guys lathe...
South Bend lathe in Hungary


A razor blade is also good for scrapping off surface rust.

There is not that much rust on the sliding surfaces. Most of it is only cosmetic. As others have said, these chinese machines are not that great out of the box. If you blue up the sliding surfaces, you will probably find their is little contact, and they should be scrapped into alignment.