Since 1998, Microsoft has had the China fever. When Microsoft got infected back then, they built a research center in Beijing. It was followed by more research centers in Shenzhen and Shanghai. Although no major breakthroughs have been achieved by the Chinese, Microsoft is now pumping over 300 million dollars every year into these centers. After all, China is growing at double digit rates and will become the next superpower, or so they believe and hope.
In the meantime, Microsoft's technologies will continue to flow to China. Because it is an American company, none of the Chinese working at Microsoft has any loyalty whatsoever to their employer. In fact, the Chinese employees feel compelled to steal Microsoft's technologies and transfer them to Chinese companies. Eventually, Microsoft will realize the mistake they have done.
Since that moment hasn't arrived yet, Microsoft is now collaborating with Baidu with the hope of increasing its online market share in China from its current 1%. Even after their previous collaboration with Alibaba failed in achieving the same hope, Microsoft still fails to see that the whole Chinese market is rigged, and it was not just Alibaba's agreement. This continued blindness will allow Baidu to steal Microsoft's search technologies to the delight of the Chinese government.