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'.
No they don't give a shit about that. The US cares about other nations spying on their businesses and commercial interests and losing dominance of leading network technology to a foreign country which would then be the leader of said technology and the US would fall further and further behind and completely lose dominance like Europe lost dominance to the US due to WWII.
The networking business would never recover from that. Huawei has shown China can lead in something, the US wants to kill that idea and wants China to assume the position of Japan which leads in none of the tech despite having a sizable way to do that in the 80s.
The best way to deal with it is to mirror what Google did with Android by forking it and setting up a group of 20,000 engineers to work on that fork and making that community driven and open source available to any company that wants to develop on the platform... so due to the privacy concerns that competing technology destroys Google's dominance on mobile... maybe even makes a dent against Apple's privacy play. While they do that they should also drop the Great Chinese Firewall. Fork Chrome. And adopt Capitalist democracy.