That's bullshit. The Chinese are pirating software because they can't afford the real thing. If they weren't pirating Windows, they simply wouldn't have it. Therefore, Microsoft has lost no money to software piracy, because there was never potential for them to get any. However, if Microsoft started selling legit copies of Windows in China for very cheap (I'm talking as cheap as the counterfeits), they'd probably start making more money on the Chinese market.
A sine curve goes off to infinity, or at least the end of the blackboard. -- Prof. Steiner