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China Decides iPhones Pose a National Security Risk
(www.pcmag.com)
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It's definitely likely that they collaborate with the government in some capacity because of how important Huawei is but that was only one part of why sanctions the enacted. IMO the bigger problem for the US was that Huawei was catching up to western corporations in crucial technologies like 5G so the sanctions were put in place in prevent them from competing. It's just run-of-the-mill protectionism.
They weren't just catching up, the US had nothing, Ericsson had nothing and Huawei had functioning 5G base stations deployed. It took Ericsson another 6? months to get even basic shilled 5G of the ground.