Microsoft struggled for years in China under the baggage of its IP-infused business model. This alienated its customer base and the government, and enabled Linux to expand its toehold. But in 1999 Gates & Co. decided to help China develop its software industry. Despite Gates' public pronouncements in the West that piracy was bad, and a 2001 McKinsey study advocating that China enforce its (so-called) rights, Microsoft decided to tolerate piracy. Gates now says this was the right decision.
"It's easier for our software to compete with Linux when there's piracy than when there's not," he states in
"How Microsoft Conquered China" .
Unfortunately, Beijing started to think more like Microsoft does here. It now requires its pc makers to install legal software.
And there are other issues, such as Microsoft's position on China's record on
individual rights.