The reason the Chinese government doesn't want to build their telecom system on Cisco hardware is the same exact reason the USG doesn't want to do the same with Huawei hardware. Because neither government is delusional enough to think that parts/service/updates wouldn't be immediately sanctioned in times of war.
The US and China are already sanctioning each other's tech. The risk of building critical infrastructure on it is obvious.
It's not symmetrical. Since Trump, the US has been extraordinarily aggressive in its use of sanctions against Chinese companies, whereas China has been very reluctant to retaliate directly.
The US has sanctioned hundreds of Chinese tech companies. China has only recently begun to retaliate in kind, but has so far only sanctioned a few US companies (Micron is the only prominent example that comes to mind).
It's a "pick your poison" situation, not a "they've got national security letters and so you can't trust them" one