
I believe the US may be acting out of fear of being edged out of the Telcom space by the Chinese Telcoms Huawei and ZTE. Lenovo, the company that bought out IBM's personal computing business and has kept the ThinkPad brand alive is also facing a lot of challenges in the US by being blocked from major US Government contracts. i believe this has nothing to do with security as it has to do with Envy. China is a growing market while the US is shrinking. I think in the end, the US market will be deemed too small and the Chinese companies will suffer no long-term damage to their business. They have entrenched themselves in Africa and Asia and this is where the growth is in the next 20 years. In all fariness, these Chinese companies have shaken the market where US and European companies sued to charge so much for network gear. I believe the growth we have seen in Kenya and Africa is in part due to affordable networking gear from China. Earlier networks were so expensive because of the cost of equipment from companiens like Siemenes (now NokiaSiemensNetwork), Alcatel (now AlcatelLucent) and Ericsson. Now these companies have been forced to lower their prices because of competition. I know you will argue that quality and support do not match the US and European companies. But I guess in the end it will be balance of cost/support/quality. And clearly the Chinese have won. I