The only thing that's unique with this case is that it's rare for the US government to be so openly hostile toward a major trade partner.
So the USG can tell a company "you cannot transfer this controlled material to these people, 'cause NatSec", but (probably) can't compel a company "build a tool for us that does X".
The fact that Google and affiliates are being used in a similar manner that we’re accusing Huawei probably makes the people in charge laugh even harder.
The real question should be that if Chinese government policy creates a security risk for the US, why are they only going after Huawei? Why not a blanket ban on all sophisticated Chinese electronics? Lenovo has been caught before putting spyware on computers, but somehow the US government still buys Lenovo laptops...
It was arguably beneficial to not worry about China's IP issues, foreign ownership, capital controls etc. in the 1990's because a growing China was good for everyone.
Now it's not, so there's a realignment.
There's cynicism here, but both issues are perfectly credible: trade/technology and security.
There are a ton of externalizations that enable China to provide, especially 'services' so cheaply. Those externalizations matter in trade, and probably should be capture in some form of tariff.
i.e. it's not actually 'cheaper' for Sweden to buy stuff from China, if all things otherwise equal the only difference is the manufacturer in China doesn't have to pay for carbon taxes or something like that. It's just moving deck chairs around.