Not only that, the ban encourages a long term move away from US-based tech as alternatives are needed within China. This new tech will ultimately be available worldwide, but no longer owned or controlled by US companies.
As someone from neither China or US, it seems crazy. It’s one thing to ban Huawei from your own markets for security concerns, but by making such a heavy handed ban on working with them, the US government seem to be making the US less secure short term, but also US companies will be less competitive and less influential in the world long term.