Corporations are inherently organs of government, being incorporated under a specific jurisdiction and receiving liability limitations in return. At the very least, Huawei is an arm of the PRC surveillance state in the same way that Google is an arm of the USG surveillance state.

The problem is not that the claim is false, but rather the one-sided focus on it that justifies the USG surveillance state continuing to turn on its own people. If this were just some defense contractor pork for internal USG networks nobody would really care, but it sounds like they intend to fork most common Internet features while dictating how they operate.