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Steve Ballmer thinks that China is not really important to the over all business of Microsoft, thanks to prevailing piracy in the country which makes it impossible for software vendors to get any meaningful additions to their bottom line from sale of software in China. During a luncheon in Australia last week, Ballmer said:

China’s not really very important to our business right now. I’d like it to be but it’s not because of the high rate of piracy of intellectual property. We need some IP reform in China for it to be important to our financial results. China is the second largest consumption market for PCs. There’ll be 48 million PCs bought in China this year and that compares to say 4.5 million in Australia.