The Intersection of Microsoft, Linux, and China
at_$tephen writes "Fortune magazine has an article stressing the Chinese market's importance to Microsoft's long term strategy, and touching on Linux's involvement in the Chinese market. In the early days of Microsoft rampant piracy helped establish it as the de facto standard in PCs despite good alternatives. History may be unfolding again here, with the exception that having the Chinese government as an ally has huge additional benefits. Or perhaps Gates has met his match with the Chinese government. 'In another boost for Microsoft, the government last year required local PC manufacturers to load legal software on their computers. Lenovo, the market leader, had been shipping as few as 10% of its PCs that way, and even US PC makers in China were selling many machines "naked." Another mandate requires gradual legalization of the millions of computers in state-owned enterprises. In all, Gates says, the number of new machines shipped with legal software nationwide has risen from about 20% to more than 40% in the past 18 months.'"
may be a horrible thing but it probably has something to do with this. That and Chinese getting richer. With 98/2k/etc you could used a burn copy of any MS stuff and it'd all work perfectly with Windows Update and everything else. Now with XP after WGA and especially Vista you can still crack stuff but it becomes more of a hassle if you care about what's on your HDD and want updates and whatever else. So I think these are the reasons the piracy is going down instead of Chinese people suddenly caring about their certificates of authenticity and 3 men holograms :)
However, there are downsides. Life in China by all account is not a lot of fun for most people. Access to things we take for granted is limited to the usual third world elite. It is not free trade is your problem, but the lack of democracy and knowledge about the rest of the world that China's people suffer from, and, I think, the acquiescence of the US population in their country being run by large businesses with monopolistic practices. If you had free trade, you would be able to buy those $3 Windows copies and the cheap medicines in the US. But you don't.
The difference between Adam Smith and Marx is basically that Smith lived in a world of tiny companies and thought capitalism was benign, while Marx lived in a world of growing capitalist monopolies and saw that it was not. What is happening in China is a repeat of the British industrial revolution - poor workers making an elite rich while being kept in a state of ignorance. Just as in the UK, some of those workers are more highly paid (the ones in the cities). How long before they start to get difficult? I really think that over the next thirty years we will find out whether in fact it was Smith or Marx who was right (my money is on Marx, as an economist you understand) and the laboratory will be China.
Pining for the fjords