> I'm sure if the US lost economically due to allegations it would be a different story altogether.

Are you joking? China has many more restrictions on foreign competition in far less sensitive areas than their communications networks.

Setting that aside, it seems reasonable for any country to decide for any reason what they allow to be used in such core infrastructure. Any country that can afford not to depend on someone they might not completely trust now or decades in the future is foolish to do so.