I can see how english fluent Mexican, South American and Canadian employees will be in competition - this is already happening, but I think that China might be one of the last places I would higher a developer due to the huge time difference and their poor english speaking ability.
We still have a thousand developers there and we pay $2500/mo for each of them. There are plenty of nice people, and a few rockstars, but on average this money doesn't buy top talent in India.
Personally I think that non technical project managers are the bigger problem, remote or not.
I'm sorry but that is a silly prejudice. You worked with one group.
Two kids go to school at Ohio State in the same program. One moves to SF and makes 200k right out of school. The other stays in Ohio and has a starting salary of 55k doing similar work. I don't think you need to worry about the Chinese coming for your tech jobs. In a remote world, the Buckeyes will get there first.
If you really want offshoring to work, you at least have to move 100% of your development staff overseas. Really you need to move 100% of your engineering altogether, and maybe a good chunk of your leadership as well.
Tennessee has a huge advantage over places like China and India simply due to communication. Language fluency, cultural similarity, and a low timezone offset all very much contribute to a successful team.