The China-US tensions are not going to get better, and, in fact, will get worse as years go by. More and more nations will be forced to choose sides. It's not good and I'm not sure what a resolution even looks like.
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As an European I don't what to think that the US seems so against kit from a Chinese company and completely fine with kit from an European company.
They should be worried about both. We also have a long term world domination plan (version 2.0)... ;)
The US would of course prefer that American technology be available, but since it's not then I suppose a partnership with two trusted allies is preferable to one with an untrusted adversary.
Nokia and Ericsson also aren't arms of the state widely believed (fairly or not) to actively facilitate global industrial and military espionage activities on behalf of a hostile government, so there's that.
While Obama made his move over SE Asia, the CCP applied the strategy they used in Australia with the PIGS. And while Trump very successfully destroyed what Obama tried to do in SE Asia, the CCP installed foreign military bases near center of trade in the Indian ocean while gaining political goodwill with middle east poorest countries. Most of Iraki oil is sold to China.
I'm not claiming i know what should be done, i'm just saying that China have already a lot of political allies and try to gain more, and now reached europe.