The long term impact of this Huawei dispute will be China building out a complete vertical communications/computing stack from low level chips to operating system to phone design. They won't get any market share in the U.S. but they'll dominate China (obv), India, Africa, and have some decent minority share in Europe. The ban is great for U.S. companies in the short term that are behind on 5G, but this will harm U.S.…
The US government doesn't care about privacy, they care about other nations spying on their citizens. It is evident from all the leaks of NSA/CIA that they spy more on their citizens than other nations'.
On the other hand, the US isn't currently occupying, detaining, and requiring patriotic reeducation for an ethnic minority within its borders.
I feel like an "It's already happening, and this is what you get" appraisal cuts less favorably towards China than the US.