I see the HIKVision strategy as something that will eventually run out of steam (or run through that "free" government money), but they won't do so before running a handful of other manufacturers into the ground and changing this industry for many, many years (and not for the better either).
The long term impacts of moves like this encourages the commoditization of the entire video industry, making companies fearful of investing too heavily in R&D and driving the industry forward. Instead they will focus on process improvements, and cutting any extra they can to hit that bottom line and simply survive. That fear won't go away the day that these deals stop, and I wouldn't be surprised if it is years before companies truly start to trust the market place to sustain heavy R&D budgets again.
I am sure for some installers this won't be a problem as long as they can get a few extra NVR kits here and there and cushion their bottom line, but for the integration companies that bring their key value when there are high technology devices that they can utilize in designs, this will definitely hurt long term in the ability for us to bring additional value to our clients