The US declaring that it think that an government should think hard about what foreign products to let into it's core infrastructure is going to have consequences the intended ones.
That is probably great news if your an European, or especially Asian software vendor trying to compete with any US based company for local government contracts, as the US have now legitimized any concern about foreign governments(including the US) forcing back doors into commercial products.
It might not be all that good if your an Californian start up trying to make money on the European and Asian market as what was a hard sell, now got harder.
Though it's not a new trend as were heading towards a situation where IT procurement is getting incredibly political and where the legal department is increasingly vetoing solutions that otherwise would have gotten selected due to jurisdiction issue in relationship to stored data.