For example, in 2001, Windows XP Home Edition cost 1,500 RMB. At that time, Beijing's average monthly income was 1,000 RMB, and assembling a computer cost around 4,000 RMB — requiring at least six months of savings to afford one. While piracy was clearly illegal, people would obviously use pirated copies if available rather than spending two months' worth of living expenses.
Today, Beijing's average monthly income is 8,000 RMB. While individuals at this income level rarely prioritize buying computers, you can still assemble a PC for 4,000 RMB. Meanwhile, Windows 11 Home Edition has dropped to 1,000 RMB. In New York, where the average monthly income is 6600 USD(by Google), the same Windows 11 costs 139 USD (roughly 1,000 RMB based on exchange rates)
It is not to say that piracy is excusable, but Microsoft's pricing clearly disregarded market realities and showed no intent to target individual consumers who would resort to pirated copies. To my knowledge, the largest clients for Windows XP at the time were Chinese banks and government, with virtually no revenue expected from individual retail customers beyond OEM partnerships.