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In his first ever public speech a few days ago, the head of GCHQ, Britain's equivalent of the NSA, explicity stated that nuclear deterrence was not a suitable model for cyber defence "because small-scale but significant cyber attacks happen every day".

It's unusual to see open disagreement between such statements, which are usually carefully orchestrated; I wonder whether it reflects an underlying conflict between DHS and the new Cyber Command, with GCHQ siding with Cyber Command?

...reality and math says that the Chinese will be better at it simply because they have more people and their people are willing to work for alot less money.

Because when you get right down to it, designing software is really no different from digging a hole.

Just like with the car industry, and all the other industries.

Riiiight. So, now my software, like my machinery and equipment, textiles and clothing, footwear, toys and sporting goods can be "Made in China (by political prisoners) " Because, of course, the PRC is all about "free as in freedom" software, and choice in every aspect of daily life.

IMHO, the real reason behind this has nothing to do with anything as piddly as market share, etc. I think that the real rationale is to build a software "Great Wall" such that in the likely event of info-conflict, their systems wouldn't be vulnerable to son-of-msblaster, ilovemao, etc...