China should just scrap its policy of information act , where government can access any company’s data. These kinds of rules kills off any chance of chinese technology to be adopted worldwide. Government should only intervene during the case of corruption , monopoly, fraud etc . China government wants full control over technology but no people in westernworld would like that. Government should reduce its influence on technology that have global economic significance.
The US has similar policies with the PATRIOT Act. The Snowden revelations clearly showed the spying the US security apparatus makes even on US citizens. Worse, the US is de facto known to spy on foreign communications, including those of their allies, with ECHELON. The US is being clearly hypocritical with this accusation.
China does have more censorship than the US, although this is also increasing in the US namely on Twitter, Facebook, and YouTube. Videos get demonetized or even banned. China does have the firewall, and a lot of people complain about the social credit system. In the US, something like the social credit system also exists, but it is corporate driven, distributed, and hidden from view. Different people might see different airline ticket prices online, banks keep your credit score, even Amazon can do price differentiation depending on your purchase history and personal data. Companies actively drug test their employees and people with a criminal record have a hard time finding employment.
Huawei is an equipment provider. They have to follow the laws of the country they operate in just like any other company. As with any electronic equipment, it can be configured according to the telecom user's needs and national law requirements of the client. Do you think Ericsson or Nokia telecoms equipment in China do not follow Chinese laws and are not configured to "spy" on Chinese citizens just the same? It is bunk.
The instant Huawei complied with a Chinese government order to spy on another country they would lose their customer's good will and sales.