Beijing Snubs Microsoft For Municipal PCs' Software
jsse points to this Gartner article which says "that on 28 December 2001, the Beijing municipal government selected among seven vendors to provide operating system (OS), office automation (OA) and antivirus software for government PCs. Beijing selected six bidders, including Red Flag, but rejected the seventh bidder, Microsoft -- the only one that was not selected. Gartner listed several reasons why Microsoft lost the bid, but missed out the famous rumor that Microsoft has built a bad relationship with China since the first Chinese Windows 95, which was written by Taiwan programmers, contains Easter eggs carrying anti-communist messages."
The Microsoft XBox, as popular as it may become, also will not be sold in China. As you may know, Microsoft looses money on each XBox they sell. With the realization that piracy is highly rampant in China and they will not sell much software, the console will not be sold there.
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Go here if you want to read up a little more on it... http://www.lik-sang.com/catalog/news.php?artc=238