Lol, blaming piracy or the Chinese government for these measures. Pirates are much better off importing a region free console for much less. $600 in store for a DRM region locked system with limited games? The official software might be cheaper in store, pirated software for the cheaper imported system is much much less...
MS is simply continuing their experiments to kill/control second hand sales. No retailers to piss off in China, so perfect opportunity to implement their original plans.