Probably yes. The industry can fight with quality or price against Chinese bad products and non Chinese good products, but products that are both Chinese and top notch quality are going to dominate the market because of comparatively lower costs. Now, that law can indeed have some basis, in theory, but tailoring it to a single brand won't achieve much as the Chinese industry can rebrand products at a cost and in times that are a fraction of a fraction of what it takes to any western democratic country to adjust the law against another brand. On the other hand, they can't make a generic law against say suspicious code running on consumer devices that could be used to exfiltrate personal data, as it would potentially hit every connected device out there, including western branded ones. My impression is that they (the law makers) are almost facing the wall where they should admit that closed proprietary devices are generally unsafe and bad, but can't because it would hurt the same industry that contributed to their campaigns, so they direct all weapons against the external enemy. "We're good, they're bad", and end of the story.