Also, this is not paranoia, it's a geostrategic fight based on the reality that a) China and US/West are doing a lot to actively spy on one another b) they're in a trade war.
Also China does not have an open market for US/Western products and I don't see any reason why the same rules applied by China to the West should not apply to Chinese companies coming to the West. That would be closer to 'fair free trade'.
But yes - if the hardware and software are both open for inspection - that is a kind of 'truth' as you say.
and companies should then be able to decide for themselves.
Question: is it true though that both hardware and software are in fact fully open? How do they maintain their IP in this case?