During this time the United States claimed that Huawei was spying on behalf of the Chinese government which caused them to be included in the list of entities. As a result access to GMS and 14nm chip technology below is prevented from being accessed by Huawei. According to a Nikkei report, China today claimed that America had hacked Huawei's browser and stolen various information since 2009.
The allegations were made by the Ministry of National Security through the WeChat service today. The US is also accused of using the services of a technology company to insert a backdoor in software to allow Huawei to be hacked. In addition to China, Russia is also said to be a victim of American hacking.
This is seen as another issue in the trade war between China and the United States that has been going on for the past four years. The US is actively imposing sanctions on China through AI chip barriers and banning Huawei and ZTE 5G equipment. There are efforts to ban TikTok as well because they are also accused of conspiring with the Chinese government to steal the data of American users. China responded by reducing exports of gallium and germanium needed to build chips.