What does this mean to U.S. network vendors? They should forget trying to compete on cost --- it's extremely unlikely they'll be able to manufacture hardware less expensively than can be done in China. When it comes to making commodity items, China will win.
Where the U.S. can win is in new technology, innovation, integration, and value-added features and services. Cisco's Chambers acknowledged that in his conference call with analysts in November of last year.
For network administrators, China targeting the U.S. is a good thing. It means more competition and less-expensive products. So as long as U.S. manufacturers focus on innovation rather than stamping out commodity items, we all win.
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