This will harm ARM as much as it will Huawei
Is anybody taking bets on what the Chinese government's response is going to be?
My money is on China suspending copyrights and patents of the Western companies in the technology sector until the Huawei sanctions are lifted. This looks like something they could plausibly argue is a proportionate response to an unlawful trade restraint under the WTO rules - see the Antigua vs. the USA gambling dispute (https://antiguawto.com/).