Is this even about technology?
The flip floppish reasoning from the US is that banning Huawei is a "security" issue.
Other people have said that they think it is about the control of the latest technologies/markets (and therefore profits).
I think that control of the markets is most likely (duh follow the profits), but also I think it is something more fundamental.
Forget about the Chinese govt being involved and pretend that this is a US company and I bet that the same thing would happen. The reasoning behind this is how Huawei deals with its shares.
--- Only people who work for the company can buy shares in it. ---
This means that shareholders (aka the people who work at the company) don't benefit from over inflating their shares with stock buy backs, or paying a few people the majority of the money. Instead re-investing money back into the company and paying themselves (the average worker) a decent wage is most effect use of any profits. In terms of Huawei we see it in the advancement of their research and how far ahead they are in 5G and have even started working on 6G. For the average worker, they are a part of the growing Chinese middle class which the western companies are tripping over themselves to try to tap.
Now if we look at one of the biggest US tech company Apple. Recently I think even the most ardent Apple fan would say that their innovation and quality has dropped compared to the Steve Job days. Maybe that is to do with them missing the Steve Jobs magic, or maybe its due to them using their money to buy back their own stocks which is great for all the people holding onto their 7 Apple shares, but not so great for the future of the company.