When Corel Draw X7 tries to reach activation.corel.com , your computer reads the Hosts file and sends the request to 127.0.0.1 instead. Since no activation server lives on your PC, the connection times out. The software then assumes you are offline and (in some cases) allows activation via a manual file method, or simply stops harassing you.
to ensure that new patches—which might include advanced DRM checks or "hosts file cleaners"—are never downloaded. Implications and Security Risks Corel Draw X7 Block Activation Hosts File