Well, that's ten years ago, now is 2017, buddy.
ten years ago, I earn about 200 dollars per month. now , I earn 3000-3500 dollars per month. only when you have enough money for living, you will spend money for software.
The exchange rate of dollar vs chinese yuan is the mainly reason why people do not buy software.
While it's true that China has come a very long way in just a few years (and has a HUGE housing bubble just dying to burst because of it) and therefore actually has the wealth to buy products from abroad, what you are NOT telling us is the other MAJOR reason why piracy is rampant in China: it's a cultural thing.
Chinese will not think twice about spending a FORTUNE buying anything that brings them status in the eyes of others (for instance, Gucci bags, Nike sport shoes, that kind of stuff), and when they really can't afford the original they will go for the replicas. And, you see, that is part of the problem: due to Mao's cultural revolution they have been taught that to be great you must copy others that came before you - not BE great yourself, but copy others. This is ingrained in their current culture now - they truly think that copying and plagiarizing is ok. They do not value IP (Intellectual Property).
Creativity and thinking out-of-the-box are thus at an all time low in China.
Look, they even copy CARS. Want to have the equivalent (in name only) of the Land Rover in China? You buy the LandWind, which looks exactly - but behaves nothing like, especially not it terms of quality, of course - the original.
There is another component to the current Chinese mentality (but more with the older generation) that makes it unlikely they will actually start buying software anytime soon (as a whole, there are exceptions since I do have a handful of Chinese customers): they think that taking advantage of others is actually the SMART thing to do. If they can scam you and make a profit, they will think nothing of it. The others will think of them as smart. So why would they actually buy software if they can get if for free?
In much the same way, the Chinese entrepreneur does not usually think long term either, and you should remember that if you are doing business with China: he will prefer to cut corners and deliver a really low quality product that will render him money NOW but ensure you will never do business with that guy again (i.e.; scam you), than actually deliver something of good quality which would ensure a LOT MORE MONEY to him in the long term. Illogical to us but that is how it is.
While it's true that while China has taken a taste for capitalism, it is also true that the Chinese leadership still holds an iron fist and tight reins over what happens in the country. Although most people in China use VPNs to get around it, the fact is that most of the Internet is off-limits. They kind of have their own Internet and equivalents to Facebook, social media, Skype, etc... For most people there are also huge restrictions on money flowing abroad, etc...
Anyway, things are changing. Let's hope our Chinese brothers will eventually understand that the only way to have an industry of their own cracking up original and innovative stuff is to protect that same industry from bootlegging. You cannot have your cake and eat it too.