More Foreign Competition in Software and Internet Services?

We’ve gotten used to American dominance in the internet/software industries.  That may not last forever:

Over the weekend, China announced that it was planning to launch a homegrown operating system to replace Windows and Android for running the nation’s desktop and mobile devices. The first iteration of this “Made in China” OS could roll out as early as October

There is some good and bad with this.  The good is that more competition in these industries would be great.  While there is already a fair amount of disruption and innovation here, there are also some key products/services where a couple firms are pretty dominant.  Consumers would benefit tremendously from more competition.

At the same time, this may not play out exactly like we free market supporters would like.  For example:

Americans have gained a lot from Chinese exports of products over the years.  It would be great if the same thing could happen in the internet and software worlds.