Following this argument, the whole world needs to stop using software from the USA (and china, and Russia and ...).

Not the whole world, just competing powers. And if you've been watching what China and Russia have been doing domestically to prop up their own tech sectors, that's exactly what they are doing.

The whole world is not hostile to the USA to the same level as USA/Russia, although if they're concerned about espionage yes they may need to. I'm actually a bit surprised the Snowden leaks didn't lead to a bigger push for FOSS in government, but I guess there's a cost/benefit analysis and fully keeping yourself out of reach of the US tech industry is probably too hard to be worth in general.

North Korea makes their own operating system for this reason.

OK. They can do that.