The product will be designed, tested and first sold in China, then, if successful, introduced to the rest of the world. That would be a first for Microsoft, a reversal of the usual flow of technology from the Seattle area. The United States is not the only place where technological advances are happening. Technological development depends on the intellectual prowess and motivation of the people doing the work. It is manifested in publications, products, conversations, trade shows, conferences, patents.
Innovations frequently appear simultaneously in multiple locations.
So far the much ado about espionage has led to the dismissal of one hapless scientist from Los Alamos National Laboratory for not following security procedures. The implication is that this scientist is just the tip of the iceberg. With so many Chinese Americans working in technically sensitive areas, China stands to be the recipient of a bounty of devastating secrets. China plans to send its own astronauts to outer space within the next decade.