I believe there are some genuine concerns in the USA that China is going to access American innovation and secrets, for a long time the USA was the top of the technology pile but China has caught up and is now accelerating away. To make it worse its a bit of a home goal in that the rush for profits Capitalism at its finest has meant moving the technology and fabrication to China and part of the Chinese requirements was that those companies had to get local Chinese partners to work with and share IP with. Now if you multiply this by multiple countries everyone has given China their IP, and knowing that historically China has been world leading country for innovation e.g. gunpowder, their people are smart and they are making the most of it.
So we are where we are China is on the up curve, USA increasingly feels like End of Empire in its actions. Americas smart people are keeping away from politics, this leaves a void where Radicals and Loony Tunes characters are getting power and dumbing that country down, we may be in for a major correction over the next few years. China's Government is dodgy at best but they are seemingly running rings around the American Government, and the reactions reek of paranoia.
I'm thinking America sees the only option to stop this is to break the system but I think its too late to try an force this the proverbial horse has bolted its going to be an interesting few years.
The issue the US has is that they can spy on all of us everywhere thanks to secret agreements with all the network gear providers.......but they can't spy via Huawei gear.
That's why they are targeting Huawei. It's the only mainstream network gear you can buy that 5 Eyes can't eavesdrop on. While Huawei was a small player, they didn't much care. They had access at other points. But when it became clear that entire national networks in Australia, Canada, New Zealand the UK and elsewhere would be effectively inaccessible to US spies.......they started telling people not to install any Huawei gear because of security concerns.
If I had to choose who was going to be spying on me, I'd rather it was China. At least they are sane.