In China, people are resoures and a tool for furthering the ideals of the few that lead the country. The methods used don't care about nor want to take personal privacy, needs or desires into consideration.

That attitude is extended to companies that do business with China, in varying degrees. So if Microsoft were to go against them over a 'relatively' minor issue, such as this, they would be cained by China and the results would be unknown and probably not protect the individual at the centre of the situation.

Perhaps it is also that Microsoft has not yet found a way to deal with China on things like this that enables them to get away with saying no to China. Maybe the next time something similar happens Microsoft won't back down.

Who knows. We have no way of knowing what tides and currents are at play. China is a monster and sleeping dragon.