And I fail to see how that damage can ever be undone. This sort of trust is lost only once.
Intercepting hardware shipments in transit can be made less attractive.
They're spies. Of course they're going to want to spy on everything.
What we're missing is adult supervision that knows enough that some barriers should not be crossed. Congress (the Senate especially) is responsible for this mess. They created it, and they're allowing it to continue.)
The memory of a goldfish seems more appropriate. Companies are considering Chinese companies in the place of parts from Cisco and Juniper. These same places would have thought that unthinkable before the current revelations because of the general knowledge that the Chinese government was doing these same things.
Purchasers punish one company for doing something that they now reward a second company for doing, while yesterday they punished them for it.
If the NSA laid low for a bit and one or more Chinese companies were caught doing the same thing, it would all swing back the other way.
The only way forward for the US tech industry is to enable end-to-end encryption, web-of-trust, and make it simple enough for mom.
If it's not the NSA it's the Chinese or Russians. Everyone needs security. The next center of gravity of the tech industry will be the place where people can get security. Silicon Valley could do it, but are they too mobbed-up with the Military Industrial Complex to actually get it done?