https://www.csis.org/analysis/wtos-first-ruling-national-sec...
What the WTO determines has changed over time, and can depend on the balance of power. The WTO knows that if it keeps making rulings that countries just ignore, it loses power and legitmacy, it has to try not to push too hard.
But your opinion is whatever the WTO decides is correct?
To me, if the penalties against Huawei are really about negotiations over a government subsidy for a TSMC plant, I'd expect the WTO to rule against the US, if it was playing 'fair'. Which doesn't mean it will.
Here's an example of the WTO ruling against the US in a trade dispute with China, and the US retaliating to try to weaken the WTO.
https://www.ft.com/content/131a55ea-a84a-11e9-984c-fac8325aa...
Here's an expert writing on "Why Limiting U.S. Tech Exports to Chinese Companies Like Huawei Is a Risky Strategy",
https://itif.org/publications/2019/05/23/why-limiting-us-tec...
China has been working on challenging actions against Huawei specifically at the WTO; although it has to be careful because they know the WTO's rulings can be effected by politics, and the US (especially current administration) may not abide by the WTO ruling anyway, they need to try to remain on good terms to avoid escalating trade war, regardless of what the WTO might ultimately rule (which can take a while too).
https://www.forbes.com/sites/zakdoffman/2019/05/29/huawei-go...
National security is an ends, not a means; its ultimate form is shapelessness, not a strict definition.